War in Ukraine affects garment export industry in Tiruppur TN
Tiruppur in Tamil Nadu is known as the Manchester of the South with most garment exports taking place from this location. Industry, already reeling from a sharp rise in commodity prices, is now affected by the Ukraine-Russia war.
Tiruppur, which is one of the largest textile centers in the country, has a turnover of Rs 3,000 crore per month, but in the last month, according to exporters, business has dropped by 20-30%.
Around 65% of Tiruppur’s exports are with the European Union and the war between Ukraine and Russia has affected exports significantly.
Raja M. Shanmugham, Chairman of the Tiruppur Exporters Association, told IANS: “Commodity prices have seen a sharp increase. For example, the price of cotton candy went from Rs 15,000 per month to Rs 80,000 per month and this affected our production.
He said most of the European brands import from Tiruppur and have operations in Russia and Ukraine and added that the war had a cascading effect on the whole of Europe leading to lower imports by countries. Europeans.
The TEA chairman said: ‘Europe and the UK are mired in post-war crisis and naturally they will reduce clothing imports and we feel the pinch of that. Most European brands have reduced their imports by 20-30%”.
He said the increase in cotton candy prices has affected the production of yarns and fabrics and is affecting the growth of the cotton textile value chain.
T. Rajkumar, Chairman of the Confederation of Indian Textile Industry (CITI), told the media that “traders are hoarding cotton and manipulating the price daily by taking advantage of future trades in MCX and NCDEX.”
“He said the 11% import duty had encouraged traders to hoard textiles on behalf of farmers and called on the Union Government to remove import duties which would automatically lead to lower prices. .
Textile industry leaders have also called on the government to make it mandatory for traders to declare cotton stocks to avoid hoarding.