TIRUPPUR: To prevent order cancellation, Tiruppur Exporters' Association (TEA) has instructed exporters to explain the delay in sending finished knitwear to foreign buyers due to the prevailing war in West Asia.
Tiruppur, the knitwear capital of India, exports mostly through West Asia. The current unusual situation has left Tiruppur exporters worried, and there is concern among exporters that delays in shipping could lead to cancellation of orders.
Speaking to TNIE, KM Subramanian, president of Tiruppur Exporters' Association, said, "The war has caused delays in shipping knitwear. Delays are prevalent across all modes of transport, including shipping and air. Some of our orders are also stuck at local ports. In addition, the cost of shipping has increased. Therefore, we are hoping that this war will end soon. Otherwise, Tiruppur will face a huge impact as we send most of our knitwear through the Gulf countries. Even knitwear for the US and European markets is shipped on this route. In addition, we also export a large amount of knitwear to Saudi Arabia and the United Arab Emirates."
"Further, if the finished knitwear is shipped late, buyers might refuse it, as we produce mostly seasonal knitwear. They cannot be sold once the season is over. Foreign buyers have to wait a year to sell them. We have therefore instructed all exporters to immediately explain to their buyers about difficulties prevailing currently and delays in shipping knitwear," the exporters' body chief said. "We have currently received information that some buyers have instructed exporters to put finished knitwear on hold due to the war."
In West Asia, Saudi Arabia and the UAE are among India's top ten ready-made garment (RMG) export destinations. From April to December last year, exports to the UAE were worth $976.9 million, and to Saudi Arabia were worth $288.9 million, sources said. The Tiruppur knitwear sector exported knitwear worth Rs 44,747 crore in total in the last financial year.
P Shanmuga Sundaram, an exporter, said, “I still haven't recovered from the impact of US tariffs as my entire production is US-based. Currently, our company is only producing about 30% of its usual volume. I have now kept ready 1.5 lakh knitwear pieces to be sent to a US buyer, but due to the current West Asian war, I have put it on hold without sending it as shipping has been affected in major routes.”
A Sakthivel, chairperson of the Apparel Export Promotion Council (AEPC), told TNIE that AEPC has presented some demands to the central government in this regard. "The demurrage charges on export cargo due to flight disruptions arising from the ongoing West Asian crisis should be waived. The DGCA should consider issuing suitable instructions to cargo terminal operators to grant a waiver of demurrage charges on export consignments that could not be shipped due to flight disruptions, airspace restrictions, or related operational constraints. Such an intervention would provide much-needed relief to the exporters and sustain confidence and continuity in India's air cargo trade during this challenging phase," he said in his representation to the secretary of the Ministry of Civil Aviation.