Already struggling with export market competition from Bangladesh and China, the Tiruppur knitwear industry now faces challenges in the domestic market as well. This year, knitwear production for the Indian market, valued at Rs 30,000 crore, plummeted by nearly 60 per cent.
Garment manufacturersare highlighting the lower production costs in states like Punjab and Gujarat, which are closer to man-made fabric (MMF or synthetic) manufacturers.
Production costs in these states are at least Rs 80 per garment cheaper than in Tamil Nadu. They are urging the state government to establish a special committee to protect the domestic industry and encourage synthetic fabric production within the state.
MPMuthurathnam, President, Tiruppur Exporters and Manufacturers Association, states, typically, most orders come from cities like Delhi, Mumbai, and Bengaluru. However, this year, the orders have shifted to Gujarat, Punjab, Bihar, and Odisha, mainly due to the cost of production differences.
He notes,domestic production is dominated by garments made from MMF rather than cotton. The association is compelled to source these fabrics from cities like Surat and Ludhiana before it processes, stitches, and dispatches finished garments from Tiruppur.
With the emergence of large-scale domestic production units in other states, demand for garments from Tiruppur has decreased. The rise in labor wages and zero-discharge of effluents has led to an increase in production costs in the state. Transportation alone costs Rs 18 per kg. Therefore, the state government needs to promote synthetic or MMF fabric production locally, urges Muthurrathnam.
MG Kumar, Vice-President, Tiruppur Seconds Baniyan Owners’ Association, adds, there is a massive stockpile of knitwear in Khadarpet, Tiruppur’s domestic knitwear trade hub. However, orders from Delhi and Mumbai have declined. The demand for pure cotton garments is decreasing as polyester ones are Rs 170 cheaper per piece.
Cheap synthetic fabric from China and Bangladesh is being imported to Kolkata, Kumar adds urging for a ban such imports.
