COIMBATORE: Garment exporters in Tirupur are keenly watching the unrest in several European countries, fearing that prolonged disruptions could affect export orders and shipment schedules.
“The garment sector in Tirupur, which depends significantly on European markets, could face challenges if the situation persists. So far, we have not felt any impact, but exports could be affected if the unrest continues in European countries,” said KM Subramanian, president, Tirupur Exporters’ Association (TEA).
Tirupur recorded garment exports worth around Rs 45,000 crore in the financial year 2025-26, of which nearly 40 per cent went to European countries, 30 per cent to the US, 10 per cent to the UK and the remaining 20 per cent to other markets.
“The sector had begun to see positive developments following free trade agreements, with some overseas buyers shifting their sourcing priorities towards India. However, the ongoing unrest could pose a fresh challenge to the improving business outlook. This is an alarming situation which needs to be monitored closely. We will know in about a week whether there is any impact on orders and enquiries,” Subramanian said.
Meanwhile, garment manufacturers are grappling with rising production costs as garment prices are increasing by 10 to 15 per cent amid a steep rise in the prices of raw materials, including yarn, cotton, dyes, accessories and other petroleum-based products. The exporters stated that the input cost increase began with the outbreak of war in West Asia and its repercussions on oil trade.
MP Muthurathinam, president, Tirupur Exporters and Manufacturers Association (TEAMA), said rising input costs have made it difficult for manufacturers to compete with exporters in other countries. “Petroleum-based products have become significantly more expensive, pushing up the prices of polyester yarn, rayon, dyes and sewing thread over the past few months. Though we receive enquiries from overseas buyers, they do not necessarily translate into orders because of the mismatch in prices. Orders are being diverted to countries such as Bangladesh, Vietnam and China, where manufacturers can offer products at more competitive prices,” he said.
Traders say many units have been relying on existing stocks to meet the festival demand, as nearly 70% of the sales in the current season came from old stock manufacturers catering to the domestic market ahead of Deepavali.
The rising costs have also affected manufacturers catering to the domestic market ahead of Deepavali. “Price of polyester yarn has increased from Rs 190 to Rs 280 per kg over the past year. If prices are not brought under control, a large number of micro, small and medium enterprises (MSMEs) will be affected. Units have been relying heavily on existing stocks to meet festival demand, with nearly 70 per cent of the garments sold during the current season coming from older stock and only around 30 per cent comprising new production,” said Muthurathinam.
The cost of printing, embroidery and other ancillary work has also increased sharply, putting further pressure on manufacturers’ margins.
Sakthi Kumar, proprietor of Hero Knits in Tirupur said the overall price of garments of polyester garments including sportswear have increased by 15 to 20 per cent over the past four months due to increase in cost of petroleum products.
With input costs remaining high and uncertainty clouding key export markets, garment manufacturers are concerned that any prolonged disruption in Europe could add to the pressure on an already challenging business environment.