Cotton yarn shortage leads price-rise of Hosiery items

摘要

Shortage of cotton yarn in the domestic market has pushed up prices of hosiery items, including innerwear and loungewear, by 10-20%, and manufacturers say the price jump could double if the supply disruption caused by increased exports is not remedied. Top manufacturers Lux Industries and Dollar Industries said the increase in yarn export to Europe and the US since October-due to disruptions in their local manufacturing and in their sourcing from China-has led to a shortage of yarn in the domestic market, and the situation is not expected to improve till July. About a third of the country's Rs. 30,000-crore innerwear industry is in the organised sector, controlled by companies having more than Rs. 500 crore in annual turnover. Vinod Kumar Gupta, managing director of Kolkata-headquartered Dollar Industries said his company has already increased prices of innerwear and outerwear by 6-8% since January and plans to increase prices further. "During the next few months, starting from March till May, we are going to further increase the prices by 10% or 12%," Gupta said, adding that prices of yarn and finished goods are unlikely to cool before July.