Home / Knowledge / News / Textiles / Karur home textiles units see 35% drop in exports to US
Karur home textiles units see 35% drop in exports to US
Feb '09
The Global Slow down has no doubt taken its toll on exports sector notably Textiles causing significant job losses. Even at this juncture the CSO (Central Statistical Organization) places GDP growth for the current year at 7.1% is an optimistic number, Mr.Gopalakrishnan, Secretary, KTMEA observed.

While stating this, the positive attitude of Karur Exporters are not cutting the jobs for the existing, trying to focus on cost reduction measures (on other grounds) & restructuring the work schedule as per the market demand for their business survival.

He also observed, the last fair at FRANKFURT buyers were also much optimistic and showing interest on our products which is giving a strength to our industry at this juncture.

As a Whole, to explore new a market and export opportunities, are the immediate remedy to face this problem and of course the government support is needed to bail out the sector in particularly, stressing to waive the FRINGE BENEFIT TAX, SALES TAX & VAT, which is long demand from our side to the concerned authorities.

Mr.V Kumar, The President, KTMEA, KARUR pointed out the following points.
1. The Industry registered huge investments in infrastructure and other upgradation facilities over the last three years.
2. The meltdown has just started to surface and we started feeling the pinch since last March itself. There is a decrease in exports 25 to 30% to US and overall drop in exports could be around 35%.– 40%
3. Importers buying capacity has comedown and they started postpone purchases. It leads to cancellation / delayed shipment / delayed payment demand for lowering of price (Up to 3 %), longer credit period and some uncertainty.
4. Export volumes fell by 5% in 2006-07 and further by 10-15% compared to the earlier year 2007-08.
5. The drop in volumes during the current fiscal year is expected to be around 30%.
6. Select exporters have shifted focus to the domestic market. They cannot expect volume growth in the domestic arena.
7. Need separate platform for textile industry as it employed huge population next to agriculture.

Mr.M Sivakannan, President, Karur Textile Forum & Managing Director, Amaravathi Textiles, Karur.
1. The Fringe benefit tax (FBT) and Service tax has added to our woes. The Government announced some relief in Service Tax in December and it should be with retrospective effect and the amount service tax paid from April last should be refunded at the earliest.
2. The refund procedures are cumbersome and some of the clauses unreasonable. This is could result in rejection of most applications citing lack of proper evidence. He pointed out to waive the Fringe benefit Tax.
3. Duty Drawback should be increased by the 4% to make prices globally viable and interest on term loan reduced to 9%
4. The Forum has also sought a two year moratorium on repayment of term loan.
5. The Focus Market Scheme has not taken off in the expected way. There should an intense bilateral dialogue with the importing countries at the ministerial level. Indian Awareness by conducting conferences, seminars, fairs etc.

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Courtesy: Global Denim Awards

Fashion | On 27th Oct 2016

Anbasja Blanken & Italian mill ITV Denim win GDA

Dutch designer Anbasja Blanken and Italian mill ITV Denim was the...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search