TIRUPPUR: Dyeing units in Tiruppur are staring at a crisis as the price of dyes and chemicals used in knitwear processing has increased by over 100%.
P Gandhirajan of Dyers Association of Tiruppur (DAT), said, "At present, around 460 dyeing units and 50 bleaching units are operating in Tiruppur. The combined daily production capacity is around 2,800 tonnes, while the daily dyeing charges are estimated at around `16.8 crore. More than 50,000 workers are employed in these dyeing and bleaching units. In recent months, the prices of dyes and chemicals have increased over 100%.
The units are also facing a shortage of dyes, with supplies reportedly unavailable even at higher prices. This shortage and price rise can be attributed to the fact that raw materials used in the manufacture of dyes are being exported from India to neighbouring countries.”
“The situation has made it difficult for dyeing units to complete existing job-work orders and accept new orders. As a result, both the domestic and export trade of knitwear are being affected. The centre and the state government must intervene immediately and take steps to prevent further increases in the prices of dyes and chemicals and bring them under control."
On Monday, all dye factories in Tiruppur shut down as a symbolic gesture to draw the attention of the central and state governments to the issue.
Industry representatives said the one-day shutdown would result in a loss of around Rs 84 lakh in GST revenue to the government, and the estimated loss in electricity revenue would be around `17 lakh for a day.
BA Madeshwaran, treasurer of DAT, said, "Over the past two months, the price of dyes has risen from Rs 250 per kg to Rs 600. The price of the chemical has increased from Rs 40 to Rs 90 per kg. Moreover, the supply is also low. When we order 500 kg of dyes from the supplier, we receive only 100 kg. Therefore, we are seeking immediate intervention from the government."
"Raw materials for dyes and chemicals are largely produced in China. There has been a temporary slowdown in production there due to environmental regulations. We hope the situation will improve soon," Madeshwaran added.
