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India’s textile industry suffering from rising price of cotton

The lower rungs of India’s textile industry – the spinning and garment sectors – are facing an unprecedented crisis owing to high input and high labour costs. The knitwear units in Tirupur blame the spinning mills and suspect the forces of a cartel for pushing up yarn prices. They also highlight the higher exports of yarn as another reason for the price rise.

The spinners said they face rapidly rising cotton prices, long power cuts and increasing power and labour costs.

The Southern India Mills’ Association said that the Tirupur factories have to modernise production processes that would increase labour productivity and reduce the environmental cost.