The rise in the price of cotton yarns has brought adverse consequences to the declining garment industries. The price of cotton yarns has increased by Rs.20 per kg in the current month which amounts up to Rs.240 per kg for 40 yarns. Furthermore, there might be a hike of Rs.5 per kg in July, adding cherry on top of it.
Besides, the fall in the value of Indian currency has hampered the export trade of India severely. Export forms a major part of income of Indian knitwear industry. Diminished export trade due to de-monetization and also due to increased price of cotton yarns had threatened the industries of their survival. Moreover, the falling currencies of other countries seized the low rupee advantage from India, thereby worsening the situation further.
According to a recent assessment, following the introduction of GST in India, the export trade of these industries experienced a sharp fall. The traders are failing to thrive in the global market. This is the scenario since October, 2017. By the second half of 2017-18, their business came down by 21%. Lastly, the most negative growth is found in the months of April and May’2018. In these months, there was an alarming decline of 34% in the industry.
Along with the knitwear industry, the textile industry, the weaving, knitting and garmenting industries are also at stake. This might lead to huge unemployment in the country. Keeping all these in mind, exporters from Tirupur knitwear industry have approached the Government to take steps for the revival of the situation.