COIMBATORE/TIRUPPUR: Escalating tensions in West Asia have begun to take a toll on Tamil Nadu’s export sectors, with wet grinder manufacturers in Coimbatore and knitwear exporters in Tiruppur reporting cancelled orders, shipment delays and rising logistics costs.
Manufacturers in Coimbatore said buyers from the West Asia have started cancelling orders midway through production following the outbreak of war in the region. R Soundarajan, secretary of the Coimbatore Wet Grinders Manufacturers Association, said over 10,000 wet grinders are exported annually to West Asia, Africa, Europe, the United States and Canada, generating nearly Rs 50 crore in revenue. “The war situation in West Asia has forced buyers to cancel orders. Manufacturers are now affected as cancellations have come in the middle of production,” he said.
J Leela Krishnan, R&D head of Renuka Industries, said a consignment of 450 grinders worth Rs 22 lakh sent to Jebel Ali Port in the UAE is stuck offshore due to the conflict. “The shipment was to be unloaded by now. I now have to bear additional costs demanded by shipping companies due to the delay. Payments from buyers will also be delayed,” he said, urging the union government to facilitate low-interest loans against Letters of Credit for small exporters with consignments in transit.
In Tiruppur, exporters of knitwear, much of which moves through Gulf routes, have also been hit. KM Subramanian, president of the Tiruppur Exporters’ Association (TEA), said delays are being reported across shipping and air cargo, with some consignments stranded at domestic ports. “If seasonal knitwear is shipped late, buyers may refuse it. We have asked exporters to immediately explain the situation to foreign buyers,” he said, adding that some buyers have already asked exporters to hold finished goods.
From April to December last year, India exported ready-made garments worth $976.9 million to the UAE and $288.9 million to Saudi Arabia. Tiruppur alone exported knitwear worth Rs 44,747 crore in the previous financial year. Exporters say the sector, already reeling from global headwinds, now faces fresh uncertainty unless the crisis eases soon.
(With inputs from P Srinivasan @ Tiruppur)