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Dyeing units strike gives jitters to exporters

January 5, 2010 (India)

The continuing strike by the dyeing unit owners in Tirupur is giving jitters to the clothing exporting sector in this South India based textile and garment hub. At a time when the order position of most of the garment exporters seems to be improving, this strike could put a spanner in the works and dampen their spirits.

The dyeing units have struck work in support of their demand that the state and the central government share the cost of treating effluents discharged by these units. Dyeing process is a very important process within the value-chain of the textile and clothing sector and a disruption could cause delay in dispatching apparel export orders.

Tirupur is well-known for its cotton knitwear, the orders for which are processed during the current period and if the situation persists, these exporters could lose out on these orders. There is also a possibility that the production process beginning from knitting could grind to a halt as inventories keep piling up at various stages of the value-chain.

Around 600 dyeing and processing units have taken part in the strike, which together provide direct jobs to around 50,000-60,000 people and in-directly to as many. The other big worry for these units is that most of the workers have migrated to their home-towns and as and when the strike gets over, it will take many more days to normalize operations.

Fibre2fashion News Desk - India
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