Alternative measures need of hour to save crippled Tirupur textile units

COIMBATORE: The US tariff impact has come as a rude shock to the already crisis-stricken textile sector in Tirupur, with some units forced to downsize their workforce. The manufacturers seek the central and state governments’ immediate intervention to prevent further setbacks.

“Of the five units, we have shut down two in the Palladam area. Almost 50 per cent of our total workforce of 2,000 staff was laid off in recent weeks. They were mostly from southern districts. As soon as the tariff was imposed, orders from the US stopped and left us with no work, and now stocks too have piled up,” said R Rajkumar, managing director of RRK Cottons India Private Limited.

Being a garment manufacturer, solely dependent on the US market, the exporter has sought the state and central governments to take remedial measures to avert further job loss, prevent production halts, explore alternative markets, and safeguard textile manufacturing units from further crisis.

Meanwhile, signs of positive development have emerged with the textile exporters in Tirupur expressing hope that talks between India and the US may resume soon towards dropping the additional 25 per cent tariff penalty on exports.

“Just like how exporters in Tirupur have been hit, the US buyers have also started to feel the impact of the tariff hike. To avoid any supply chain disruptions, our exporters and US buyers are in talks to take the business forward by cutting down on profits. Following some positive developments in the bilateral relationship between India and the US, enquiries for orders have resumed. However, how far these enquiries will translate into business depends on roll rollback of tariff,” noted Kumar Duraiswamy, an exporter and joint secretary of Tirupur Exporters Association (TEA).

The exporters are also exploring strategies to identify alternative markets to keep the textile business thriving amidst ongoing challenges. “There is a possibility of an annual loss of Rs 14,000 crore due to the ongoing crisis,” he added.

Tamil Nadu, which accounts for one-third of the nation’s textile manufacturing capacity, contributes 28 per cent of India’s total textile and clothing exports. In the last financial year, knitwear exports from Tirupur witnessed a robust growth of Rs 44,747 crore. It was Rs 33,400 crore in the previous financial year 2023-2024.

Of the total exports from Tirupur, a significant volume of 40 per cent has been to the US. However, the hiked tariff meant India losing out to competing nations like Bangladesh, Cambodia, Vietnam, Sri Lanka, and Pakistan.