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Knitwear exports from Tirupur likely to revive soon
Oct '11
Knitwear exports from the South Indian town of Tirupur, which are on decline owing to the shutdown of dyeing and bleaching units in the area on a High Court order, are likely to revive soon.

Explaining the export situation, Tirupur Exporters Association (TEA) President Mr. A Sakthivel told Fibre2fasion, “Since last two years, things are not going well for knitwear exports. First, there was an increase in price of cotton and cotton yarn. Also, there was no stability in yarn prices. This continued for about 14 months.”

“Then, around end of January 2011, the Madras High Court banned all the dyeing units. Since then, no dyeing unit is operational in Tirupur. So, we have to send the fabric for dyeing to other places all across India. This has created a problem with the buyers as they are not able to get delivery of their orders on time,” he said.

He added, “Some of the closed dyeing units became operational two months back after getting permission. But by the time that decision came, recession in Europe had already set in, which led to cancellation of export orders and the European buyers also asked the exporters to hold the goods meant for shipment. So, due to all these reasons, knitwear exports from Tirupur are on a decline.”

However, the TEA President was hopeful of revival of knitwear exports in the coming months. “Tamil Nadu government has allowed three Common Effluent Treatment Plants (CETPs) to be set up, which will pave way for resumption of around 200 dyeing units. It will give relief to companies and buyers,” he stated.

“Secondly, we expect some improvement in exports after Diwali. Also, there is government support in the form of 2 percent interest subsidy on new ventures and 2 percent duty credit on focus to European markets. All these will help in strengthening exports in the coming months,” Mr. Sakthivel said.

Fibre2fashion News Desk - India

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