Coimbatore: Garment exporters in Tirupur reported the manufacturing price of clothing had gone up by 30% since December 2019, due to the skyrocketing costs of raw materials, largely because of yarn.Raja M Shanmugam, president, Tirupur Exporters’ Association, stated the dye cost had shot up by over 40 percent in the last six weeks.
“We anticipated to fall throughout the lockdown, however, in vain.
The purchase price is still moving up” Figuring out they had incurred deficits due to the lockdown, he stated they were made to ship the merchandise via air freight as opposed to sending themas they were in a rush to supply the goods to the buyers at scheduled time.
“The shift in mode of transport has cost us dear.
Given our profit margin is as low as 5 percent to 7% of their export value, the reduction will be enormous.” Explaining that many of the businesses have been in the procedure for decreasing their losses,” Kumar Duraisamy, an exporter, said they’re currently working with only 25 percent of their workforce and generating lesser proportion of products.
“However, the basic expenses such as the construction rent and power prices remain exactly the same.
When we’re producing about 2,000 parts of garment using a simple cost of Rs 1 lakh before, today we’re generating only 400 bits while paying the identical volume.” He said that the lockdown was quite different this time.
“Last yearwe had been in the conclusion of a year and a lot of the orders were discharged.
Significantly, the lockdown was enforced throughout the world.
Now, however, we’re in the midst of a year and orders are now pending.
Along with also the lockdown is enforced solely in India.
We cannot compare the lockdowns whatsoever.” The garment industry has two major seasons – summer (September to March) and winter months (April to August).
G R Senthilvel, secretary, Tirupur Exporters and Producers’ Association, stated the effect of the lockdown will be felt just after the businesses begin to work in a full-scale way.
“The lockdown comfort has instilled a feeling of confidence one of our clients, that are delighted to see us resuming work.
This may help us keep our customers.”
Garment production Price shoots up by 30 Percent as inputs turn Expensive
