Knitwear industry hit, may lose foreign clients

The MSMEs involved in knitting, dyeing, compacting, printing, embroidery, checking, ironing and packing were also affected. The Tiruppur Exporters Association (TEA) has shot off a petition to the Prime Minister’s Office on Thursday urging the central government to bring an end to the lorry strike issue at the earliest. “Due to lorry strike, finished garments could not be transported either through seaport at Thoothukudi, Chennai, Cochin and Mumbai or through airports in Chennai, Bangalore and Cochin. 

A further delay in settling the issue would derail the exports and affect the entire textile industry,” said Raja M Shanmugham, president of TEA. The knitwear exports from Tirupur recorded a decline of 21 

per cent since October last year compared to the corresponding period in 2016-17. 

In the first quarter of the current financial year (2018-19) the exports have further declined by 21 per cent. Tirupur was making exports to the tune of Rs 26,000 crore annually. However, the exports have come down after GST and other factors.  Exporters fear that foreign buyers would not be happy with a delay in their deliveries as this is a season conscious and design-driven export market. 

“We are already struggling to sustain in the business due to tough competition from countries like Bangladesh, Cambodia, Myanmar, Sri Lanka, Pakistan, Vietnam and China,” he added.   Tirupur was making exports of Rs 26,000 crore annually, with 45 per cent to the European Union, 35 per cent to the USA and 20 per cent to other countries. However, the exports have come down by thousands of crores after GST and other factors.  

“Our members have already started receiving communication from foreign buyers on the delays. Further delays would lead to a loss of not only the existing orders but also in getting future orders after failing to make on-time deliveries.”