Monday, September 25, 2023

Tiruppur clothing industry in crisis due to strong increase in yarn prices

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With the steep walk in yarn prices that continue the clothing industry in Tirupura are in crisis.

Several units have been down for the past few months and most of them are getting outsourced orders from major garment exporters.

Exporters of Tiruppur, which is considered the knitwear center of India, are in a difficult situation because they cannot fulfill the international orders they have taken. According to exporters, this would lead the market to go elsewhere.

It should be noted that Bangladesh and Vietnam are two major contenders for the European and American markets along with India and Sri Lanka. While the economic crisis in Sri Lanka has already taken its toll on that country, with the industry collapsing, rising yarn prices have brought a hard stop to several units in Tiruppur.

It should be noted that the prices of all kinds of yarn hovered around Rs 220-290 per kg in 2021, but after the owners of the yarn factory increased the prices, the raw material reached more than Rs 400 per kilogram.

The exporters are unable to negotiate prices with the buyers and therefore orders are falling as the high yarn prices lead to losses for the industry.

An exporter who does not wish to be named, said in a conversation with IANS: “High yarn prices make it difficult for us to negotiate orders. In August 2021 the prices of one kilogram of yarn were 220, but now the prices are in April -Maybe about Rs 440 per kg touched.”

He said the industry cannot survive at the price of yarn because there would be huge losses for the exporters and therefore most of the companies are closed or are working with a miniscule workforce.

The exporter said a large number of workers from North Indian states and Northeastern states have left Tiruppur for good because they could not get work. Several local workers from the districts of Pudukottadindigul, Maduraiand Tiruvannamalai have also moved to their home district as there are no jobs in Tiruppur.

Ravisekhar. K, a worker from Pudukottai in Tamil Nadu speaking to IANS, he said, “I used to live in Tiruppur with my friends and now almost all of us are leaving the garment city. There is no work and we were earning about 23000 Rs per month. I don’t know what I’m going to do to live in my village to do anything other than farming. But farming will not bring much money and my family consisting of a father, mother, wife and two children will have to starve. It is a very sad state of affairs.”

Notably, there are about 1.30 lakh migrant workers in the various garment factories of Tiruppur and if the crisis continues, it will affect a large number of families dependent on this industry.


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