Tirupur, July 11 (UNI) Tirupur Exporters Association (TEA) today appealed to Textile Mills Associations members not to increase yarn prices in the interest of the industry.
In a press release here, TEA President A Sakthivel said the Centre has conceded the Mills Associations demands and announced zero duty on cotton imports last week, thereby removing the basic customs duty of 10% and Special Additional Duty of 4%.
In addition, the Finance Ministry has also now withdrawn Duty Drawback benefit of 1% of FOB value of raw cotton exports. But unexpectedly, Textile Mills raised yarn rates yesterday by Rs. 5/- for coarser counts, he said.
He said when the yarn prices were hiked by about 25% in the last two months, the increase of yarn rates by Rs. 5/- by mills at this juncture was totally unjustifiable and added the beleaguered exporters were neither in a position to pass on the increased cost to buyers nor absorb the cost.
He said considering the crucial situation, Textile Mills should reduce the yarn rates and follow "A win win approach" for sustainability of Value added business.
UNI KS VV AK1742