TIRUPPUR: A slump in demand in the United States, the impact of Ukraine war in Europe, and unstable yarn prices seem to have taken a toll on the Tiruppur garment industry as exports from India’s largest garment hub dropped nearly 34% in October 2022 compared to same period last year. This is the third consecutive dip in exports over the past three months.
According to industry sources, garment exports from Tiruppur dropped from Rs 3,290 crore in October 2021 to Rs 2,165 crore in October 2022. Month-on-month, exports dropped from Rs 3,177 crore to Rs 2,628 crore in August and from Rs 3,130 crore to Rs 2,282 crore in September, a fall of 17.3% and 27%, respectively.
Speaking to TNIE, Tiruppur Exporters Association (TEA) president KM Subramanian said, “Currently the price of all categories of cotton yarn is below Rs 350 per kg. In the beginning of 2022, the prices were moderate but between February and April, the prices zoomed to record high. This crippled the ability of small and medium exporters to finalise deals and execute export orders. This slowdown reflected in the export figures in August, September and October. The price of cotton yarn is falling. Exporters have also started getting orders and we may see an uptick in the upcoming months.”
Harvey Exports proprietor C Ramasamy said, “In April and May, yarn price jumped to Rs 440 per kg. We were not able produce goods for exports as we found it difficult to ink contracts at the right price with importers and buyers. Currently, the price of 40s and 30s count of yarn is below Rs 350 per kg. I hope we can finalise new orders.”
‘Yarn price hike has impacted garment unit’
“Not just exporters, garment units catering to the domestic market are also facing trouble. They have not gotten any big orders for the past six months,” said Tiruppur Exporters and Manufacturer Association (TEAMA) president M P Muthurathinam.
An official from the state textile department said, “Yarn price hike has impacted garment units across the country. Exports across the country have registered a significant fall for the past few months.”