The Tirupur Exporters’ Association (TEA) says, garment industry in Tirupur, which has over 10,000 manufacturing units, is facing the worst time ever. The garment clusters that employ over 6 lakh people is staring at a loss of over Rs 10,000 crore in just three months. For both the small and big firms, the road to revival seems difficult.
As per Raja Shanmugham, President TEA revealed, Tirupur exports industry used to see a turnover of Rs 2,500 crore per month on an average, but the units have not yet received their payment dues for January and February. As COVID-19 affected the EU, Canada and other markets, the brands have not made our payments. Besides, the shipments released in March are right now on high seas or lying at the ports.
Even the domestic market, which is also worth Rs 2,500 crore a month, is affected. The business hub of Tamil Nadu is wearing a deserted look. The chances of its revival depend solely on government patronage as most firms have bank loans and insufficient working capital.
The association has requested the government for a moratorium of at least one year. “It’s clear that in next three months we won’t get any major export orders as coronavirus has battered economies globally. It has also requested the government to infuse at least 25 per cent of working capital into the industry.