China power crisis hits dye supply, Tiruppur garment makers wary – Reuters
Express press service
TIRUPPUR: Garment makers in Tiruppur, India’s knitting capital, are suffering heavy losses due to rising prices of dyes and chemicals. According to sources, the price of dyes, chemicals and wetting agents used to color fabrics has increased by more than 30% in recent months.
Dye and Chemical Traders Association (Tiruppur) Secretary Pon Senthil said: “Almost all dyes and chemicals are imported from China by traders based in Gujarat and Maharashtra and distributed throughout the country. However, due to the extreme shortage of electricity in China, chemical production has In addition, the economic crisis triggered by the Covid-19-induced confinement and China’s climate change policy have disrupted the supply chain. supply and passed on to Indian importers.
Explaining the impact of rising production costs, Treasurer of the Tiruppur Exporters Association (TEA), P Mohan, said, “Whenever we send a quote to the buyer or importer ,we quote the current price and cost.It takes about 2 weeks to reach an agreement.If there is a price increase in the meantime,we cannot renegotiate or negotiate with customers and have to bear the loss Small units are the most affected by fluctuating prices.
Rajendran, owner of Gokul Garments, told TNIE, “Dyeing is an important process in the manufacturing process of garments and textiles. The cost of dyeing and other chemicals has increased over the past five months, leaving our resources depleted.Since the contract between garment units and exporters is predetermined, exporters cannot revise the price when the cost of inputs increases.