Increasing raw material costs have pushed the jeans industry of Anantapur into a crisis. The jeans business turnover of this town in Andhra Pradesh which crossed Rs 1200-odd crores annually has fallen by more than 50 per cent. From a production of 10,000 jeans pants a day, production has fallen to 2000 jeans pants. The economic slowdown has paralysed production.
As per Rayadurg Readymade Garments Association costs of raw materials like colors, threads and zips have doubled. Transport costs have risen. Disruptions in transport due to the pandemic, particularly in states like Kerala, Karnataka, AP, Tamil Nadu and Maharashtra, lessened the volume of business and thereby production. The industry was hit hard by two waves of the Covid pandemic. The town dubbed as a jeans town used to export jeans including tops and bottoms on a massive scale. But today several units in the industry have downed shutters and downsized their workforce consisting mainly of women. The earnings of the 35,000-odd workforce have dipped. This home-based business was the best bet for housewives, who could sit in their houses and safely earn at least Rs 10,000 a month. But now with financial constraints regular buyers insist on instalment payments to continue purchases while company suppliers want payment upfront and do not accept partial payments as before.