China power crisis hits dye supply, Tiruppur garment makers wary

According to sources, price of dyes, chemicals and wetting agents used for colouring fabrics has increased by more than 30 per cent in the last few months.
China power crisis hits dye supply, Tiruppur garment makers wary

TIRUPPUR: Garment makers in Tiruppur, the knitwear capital of India, are reeling under severe losses because of increase in the price of dye and chemicals. According to sources, price of dyes, chemicals and wetting agents used for colouring fabrics has increased by more than 30 per cent in the last few months.

Dye and Chemical Traders Association (Tiruppur) secretary Pon Senthil said, "Almost all dyes and chemicals are imported from China by traders based in Gujarat and Maharashtra and distributed throughout the country. However, due to the extreme power shortage in China, chemical production has reduced by over 25 per cent. Besides, the economic crisis triggered by Covid-19 induced lockdown and China's climate change policy disrupted supply chain and has spiralled on the importers from India.”

Explaining the impact of increase in the production cost, Tiruppur Exporters  Association (TEA) Treasurer P Mohan said, "Whenever we send a quotation to the buyer or importer, we mention the current price and cost.  It takes around 2 weeks for a deal to be finalised. If there is a rise in the pricing in the meantime, we cannot renegotiate or bargain with the customers and must bear the loss. Small units are affected the most by the fluctuating prices."

Rajendran, owner of Gokul Garments told TNIE, "Dyeing is an important process in the garment and textile manufacturing process. The cost of dyeing and other chemicals increased over the last five months leaving our resources stretched. Since the contract between garment units and exporters is pre -determined, exporters cannot revise the price when input cost increases.”

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