Garment exports from Tiruppur slump 34% to 2,165 cr in Oct: TEA

Tiruppur, Nov 17 (KNN) Due to the hike in yarn prices in the recent months, the garment exports from across the country have registered a significant fall for the past few months.

The Tiruppur garment industry, which is the India’s largest garment hub alone witnessed a 34 per cent dip in exports in October 2022 compared to same period last year. This is the third consecutive decline in exports over the past three months, said Tiruppur Exporters Association (TEA).

The garment exports from Tiruppur dropped from Rs 3,290 crore in October 2021 to Rs 2,165 crore in October 2022. Month-on-month, exports dropped from Rs 3,177 crore to Rs 2,628 crore in August and from Rs 3,130 crore to Rs 2,282 crore in September, a fall of 17.3 per cent and 27 per cent respectively.

Speaking to TNIE, TEA president KM Subramanian said, “Currently the price of all categories of cotton yarn is below Rs 350 per kg. In the beginning of 2022, the prices were moderate but between February and April, the prices zoomed to record high. This crippled the ability of small and medium exporters to finalise deals and execute export orders. This slowdown reflected in the export figures in August, September and October. The price of cotton yarn is falling. Exporters have also started getting orders and we may see an uptick in the upcoming months.”

“Not just exporters, garment units catering to the domestic market are also facing trouble. They have not gotten any big orders for the past six months,” said Tiruppur Exporters and Manufacturer Association (TEAMA) president M P Muthurathinam.

A slump in demand in the United States, the impact of Ukraine war in Europe have also played their part in the declining exports.  (KNN Bureau)