Amid mounting production costs and delayed payments, yarn manufacturers in Tirupur district, Tamil Nadu, have come together to form a new body -- the Tirupur Yarn Manufacturers Association -- in an effort to revive the ailing sector and restore profitability.

Tirupur, a major textile hub, is home to over 50 yarn mills that supply to the region’s thriving knitwear industry.

Despite the rapid growth of both domestic and international knitwear markets, which are expected to touch Rs one lakh crore in the near future, yarn manufacturers say they are unable to keep pace due to increasing operational challenges.

In a statement, executive committee members of the newly formed association said the industry has been under continuous stress for the past five years.

“We are battling a combination of rising cotton prices, soaring electricity tariffs, and delayed payments from buyers. All of this has severely impacted our viability,” one member said.

According to the association, the price of cotton -- the primary raw material for yarn -- has surged by Rs 2,000 per candy (356 kg) over the past 10 days alone. The steep and unpredictable price fluctuations, they said, have thrown production planning and costing into disarray.

“While the downstream sectors are witnessing growth, we as the foundation of the knitwear value chain are not advancing in tandem. We are unable to pass on the increase in production costs to buyers, which is squeezing our margins,” one of the members said.

The association has urged the Cotton Corporation of India to intervene and take steps to regulate and stabilise cotton prices, which they say is essential for sustaining the entire textile manufacturing ecosystem.

The formation of the Tirupur Yarn Manufacturers Association is aimed at creating a unified platform to voice concerns, engage with policymakers, and collectively seek solutions to the issues plaguing the industry. Members hope that with coordinated efforts, the sector can navigate the current crisis and regain its footing.