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Rise in raw material prices increases production costs, allege Tirupur garment exporters

  

Tirupur garment exporters have alleged that the rise in raw material prices has raised their production costs by 30 per cent since December 2019.

Raja M Shanmugam, president, Tirupur Exporters’ Association said, the increase in yarn prices by more than 40 per cent in the past six months is forcing exporters to send the goods through air cargo rather than shipping them, as they were in a hurry to deliver the products to the buyers in scheduled time

Exporter Kumar Duraisamy, said, exporters are working with just 25 per cent of the workforce and are producing lesser percentage of goods. But the basic expenses like the building rent and electricity charges have remained the same.

He said the lockdown was very different this time. Exporters are in the middle of a season and orders are pending. GR Senthilvel, Secretary, Tirupur Exporters and Manufacturers’ Association, added the impact of the lockdown would be felt only after the industries start to function in a full-fledged manner.

 
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