Raw material price spike, labour crunch push Tirupur garment output down 40%

CHENNAI: Tirupur’s domestic garment industry is staring at a sharp slowdown, with production dropping by nearly 40% in the past month due to surging raw material costs and a worsening labour shortage, even as fresh demand picks up ahead of the school reopening season, according to a Daily Thanthi report.

Tirupur, known for its large knitwear base with over 10,000 units, supplies garments to several states including Kerala, Karnataka, Andhra Pradesh, Telangana and Maharashtra. While summer clothing orders were completed and shipped earlier, manufacturers are now seeing fresh demand for school uniforms such as innerwear, chemises and shorts.

However, many manufacturers are hesitant to take on new orders due to rising input costs and worker shortages. Over the past three months, yarn prices have increased by up to Rs 24 per kilogram. At the same time, global supply issues have made sourcing raw materials more difficult, pushing overall production costs up by around 20%.

The South India Knitwear Manufacturers Association (SIKMA) has announced a 7% increase in garment prices, but manufacturers say this is insufficient to offset rising costs. Despite this, they continue production due to a lack of viable alternatives.

Industry representatives also point to a labour crunch, as many migrant workers have returned to their hometowns for elections. According to SIKMA vice-president Balachandar, these combined challenges have led to a 40% drop in domestic garment production over the past month.

Compared to last year, new orders have also declined by around 25%.

With costs rising and workforce availability shrinking, Tirupur’s domestic apparel sector remains under pressure, even as demand begins to recover.