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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 out of action in recent months and most have received 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 as the industry collapsed, rising yarn prices have led to a sharp shutdown for 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 yarn factory owners raised the prices, the raw material reached more than Rs 400 per kilogram.

The exporters are not able to negotiate prices with the buyers and therefore there is a drop in orders as the high yarn prices lead to losses for the industry.

An exporter who does not want 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 for the price of yarn as there would be huge losses for the exporters and so most of the businesses are either closed or 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 in my village something 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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