TIRUPPUR: Screen printers in the district have decided to add drying charges for all garments. They have proposed to charge Rs 1.50 per garment, but garment units expressed disappointment about the sudden increase in charges and feared this could come under GST ambit.
Speaking to TNIE, Tiruppur Export Knit Printers Association (TEKPA) President TR Srikant said, "There are over 700 screen printing units in the district and most of them are under financial stress. Screen printing is an important process in the garment industry. Earlier, we used many kinds of prints using vinyl, but it usually lasts for only a few years. But screen printing lasts longer. Even during screen printing, drying is a vital part, which will prevent other garments from rubbing against the print. Besides, proper drying ensures the structural integrity of the print and the design."
"Furthermore, proper printing and drying methods help designs last forever. Earlier, we used diesel for drying the garment, but now, in order to comply with pollution norms, we switched to LPG fired ovens. But, the cost of the LPG cylinder has been rising consistently. Last year, the price of LPG was Rs 88 per kilogram, but now it is Rs 126 per kilogramme. So, we were forced to levy a new drying charge for garment units. We are charging Rs 1.50 per garment. As there are more than 10,000 workers in the industry, the government could offer subsidies for screen printing units," he said.
But, garment units and export companies have expressed disappointment about the drying charges. AK Fashion Garments owner Mohan Shankar said, "Earlier, screen printing units charged for printing designs on the garments and drying was a part of the screen printing charges. But, now they have levied a separate charge for drying and for each piece. Hundred garment owners will be affected by the sudden decision by the screen printing units."
Tiruppur Exporters and Manufacturer Association President MP Muthurathinam said, "Tiruppur garment industry is already suffering from various issues including yarn price increase. Apart from the major garment exporters, hundreds of garment units and exporters, are dependent on other processing units such as dyeing, knitting and screen printing. If processing units increase their charge, it will in turn add pressure to the garment units. Screen printing has proposed a new drying charge without consulting garment units."
Explaining the additional tax burden, Chartered Accountant - V Jaivinoth said, "The garment processes such as screen printing have 5 per cent GST, which is the usual procedure. But, separately adding charge will also invite a GST of 5 per cent for registered garment units. But it is claimable as an input tax credit. Meanwhile, unregistered garment units will be charged 18 per cent GST."
DMK condemns price rise
The trader's wing of DMK has condemned the rising prices of cotton yarn and has threatened to organize protests in the city.
Speaking to TNIE, DMK (Traders Wing) district Organiser R Tamil Arasu said, "Unprecedented rise in cotton yarn prices is threatening the garment units for the past several months in Tiruppur. Many garment units have reduced consumption and cut production. The primary reason is the acute cotton shortage prevailing throughout the country as there was less cultivation of cotton. We urge the union government to offer financial benefits for cotton farmers through subsidies and high-quality cotton seeds. Besides, we are also worried by the Cotton Corporation of India(CCI) methods of selling cotton to traders, who are often the reason for causing a cotton yarn shortage. We request CCI to allow the import of cotton We have scheduled a protest next week. Top leaders from DMK will be participating in the protest."