Several MSME textile mills in Coimbatore downed shutters on Saturday on account of lack of demand for yarn.
| Photo Credit: Siva SaravananS
Textile and attire exports shrank 11.3% in June in contrast with the year-earlier interval at the same time as a number of textile mills in the South suspended manufacturing on account of tepid demand.
Export of cotton yarn, materials, made-ups and handloom merchandise slid 1.21% year-on-year (y-o-y). Shipment of artifical merchandise noticed a 17.22 % decline whereas export of jute merchandise and carpets plunged 26.72 % and 15.43% respectively, in accordance to knowledge shared by the Confederation of Indian Textile Industry.
While textile exports in June have been price $1,624 million ($1,736 million in June 2022), attire exports have been to the tune of $1,248 million ($1,501 million).
Siddhartha Rajagopal, govt director of Cotton Textiles Export Promotion Council, mentioned export of cotton merchandise was anticipated to revive in two months as the speed of decline month-on-month in June for cotton textiles had decreased to (-) 1 21%.
Meanwhile, smaller textile mills in Tamil Nadu have been suspending manufacturing due to lack of orders.
Ok.M. Subramanian, president of Tiruppur Exporters Association, mentioned the smaller firms have been the worst affected in the Tiruppur cluster.
“Factors such as slowdown in the U.S. and EU and lack of cost competitiveness were affecting textile and clothing exports. The yarn that should be exported is coming into the domestic market. There is already excess capacity in the country. These were among the factors affecting the textile industry,” mentioned T. Rajkumar, chairman of Confederation of Indian Textile Industry.
Ravi Sam, chairman of Southern India Mills’ Association, mentioned if Free Trade Agreement is signed with the U.Ok., there will likely be rapid aid for Indian textile and garment exports. “We are expensive because of 9% to 11% duty in the U.K. market. If India gets duty-free access, there will be steep jump in orders for garment and made-up exporters from their existing customers. This will revive demand,” he mentioned.
An trade that labored for 3% to 6% revenue is at the moment incurring 5% to 10% loss, they mentioned. “All mills are suffering cash loss. The crisis has turned acute in the last two months,” mentioned Mr. Rajkumar. The trade has sought the removing of 11% import responsibility on cotton, moratorium on compensation of principal quantity and Emergency Credit Line Guarantee Scheme loans.