Despite knitwear exporters in Tiruppur clocking in exports worth Rs 33,525 crore in the 2021-2022 fiscal, exporters are not happy as the volume of exported goods has not increased. Though revenues have jumped from Rs 24,750 crore in 2020-21 to Rs 33,525 crore in 2021-22, a non-increase in volume will compel Tiruppur to lose to countries like Vietnam and Bangladesh who have free access to key markets like the EU.

Rise in input costs, especially the ever-increasing prices of cotton and yarn, is hurting the industry as many are forced to incur losses due to sudden hikes in prices – not many buyers accept an increase in the final product after signing the agreement. Raja M Shanmugham, President, Tiruppur Exporters’ Association (TEA), urged the Union government to intervene and regulate cotton prices without which the industry’s survival is difficult. He called for a mandatory declaration of cotton stock with all stakeholders to curb the hoarding and speculation by the traders under MCX and NCDEX.

K G Ganeshan, Partner, Swell Knit, adds, the constant increase in raw material prices is hurting export volumes that have been declining for a while. However, domestic sales have been increasing in the past few years with many firms adopting the hypermarket concept which has led to more demand for garments, adds Ganeshan.