Garment makers in Tirupur are reeling under severe losses because of increase in the prices of dye and chemicals. Prices of dyes, chemicals and wetting agents used for coloring fabrics have increased over 30 per cent in the last few months.
Tirupur is the knitwear capital of India. Almost all dyes and chemicals are imported from China by traders based in Gujarat and Maharashtra and distributed throughout the country. However, due to extreme power shortage in China, chemical production has reduced by over 25 per cent. Besides, the economic crisis triggered by the Covid-19 induced lockdown and China's climate change policy disrupted the supply chain and has spiraled on importers from India.
Dyeing is an important process in the garment and textile manufacturing process. The cost of dyeing and other chemicals increased over the last five months leaving exporters’ resources stretched. Since the contract between garment units and exporters is pre -determined, exporters cannot revise the price when input cost increases. Whenever exporters send a quotation to the buyer or importer, they mention the current price and cost. It takes around two weeks for a deal to be finalized. If there is a rise in pricing in the meantime, they cannot renegotiate or bargain with the customers and must bear the loss. Small units are affected the most by the fluctuating prices.’’