Migrant workers at Tirupur, India are out of a job. Several units in this textile city of Tamil Nadu have shut down as a protest demanding an increase in yarn prices.The city which was once buzzing with activities is now in lockdown mode.

There are around 6200 dyeing, knitting, stitching, and garment printing units in and around Tirupur. There are around 12,000 migrant workers especially from Orissa who are employed in various industries including the textile industries in the district. Tirupur’s apparel exports fell 21 per cent in October 2022 from October 2021. Of this, knitwear exports, which Tirupur is known for, fell almost 40 per cent. And this was the third straight month knitwear exports contracted. Average capacity utilisation at garment exporting units in Tirupur is 30 per cent now.

The US, EU and the UK account for 85 per cent of shipments from Tirupur. With high inflation in these economies, clothing is not a priority for consumers now. Further, with buyers saddled with huge stocks, they are postponing delivery. This has resulted in stocks piling up at the producers’ end. So Tirupur has a huge inventory of finished goods as brands are asking for deferred shipments. With buyers in the EU and the US holding high inventory, and expectations of better sales during the Thanksgiving holidays and Christmas, exporters are expecting orders to revive only by January.