Some 300 textile and weaving units in Tamil Nadu, India plan to shut down for some time. The units mainly in Tirupur and Coimbatore have decided to do this due to unstable yarn prices and highpower tariffs. Prices of grey fibers and textiles have risen due to the volatility of yarn prices and high tariffs.
Apart from this Tirupur’s apparel exports have fallen 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 Tirupuris 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.