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The Tirupur Exporters' Association (TEA) has urged the Mill Owners Associations at Dindigul and Coimbatore to control the prices of yarn in order to offer respite to the domestic garment manufacturing industry.

'The sudden hike in cotton prices has posed a serious threat to the competitiveness of the small-scale spinning mills in the country. It is difficult for most of them to absorb the price hike or even pass on the price rise to their customers since export orders, prices, delivery dates and everything else is confirmed months in advance. Therefore, they cannot risk passing it to their clients in the fear of losing them,' said Abhishek Bohra, director of Bajrang Textile Mill, a small-sized spinning mill in Kolhapur.

TEA has submitted a letter to P Appukutty, president of Tamil Nadu Spinning Mills Association (TASMA) and Thulasidharan, chairman of the Southern India Mills' Association (SIMA), urging the association to reduce the price hike by 50% in sympathetic consideration of the welfare of SMEs in the garment industry.

'The spinning mills association should voice the growing concern regarding price hike and urge the government to regulate cotton exports and put a cap on the current spot prices on cotton, which are ruling at high levels,' said Nitin Vyas, managing director of Supreme Mills, a small-sized spinning mill in Ikkal, Karnataka.

Industry experts fear that small-scale spinning mills will be hit more severely than the big players if the upward trend in cotton prices continues.

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