Tirupur Exporters' Association (TEA) requested the textile mills to save the knitwear garment export sector as the price of cotton yarn has been increased by Rs. 20 per kg which made it difficult to sustain the competition of the global market.
TEA president Raja M Shanmugham said, "The beleaguered knitwear export sector has been passing through a challenging business environment further to implementation of GST, which led to a continuous decline of knitwear exports month on month basis since October 2017 after completion of three months transition period.”
He pointed out that the decline in exports for the second half yearly period of 2017-18 was about 21%. The most worrisome factor was the prevalence of negative trend in exports growth continues in current fiscal year also.
He also stated that the sector is presently only booking orders and the business had started looking ahead, the problem arised again due to increased yarn prices which could derail the industry.
This would affect the sector and also the textile mills. The TEA President also highlighted his meeting with the Union Textiles Minister Smriti Irani about this issue. He also made a request to Cotton Corporation of India to ensure smooth availability of cotton yarn so that the interests of the farmers are protected and also generate additional employment opportunities.