Indian knitwear export business fell by Rs 5,279 crore:: Indian knitwear exports declined by Rs 5,279 crore last year due to the global coronavirus pandemic.
Globally, knitwear exports are high from countries including China, Bangladesh, Vietnam, Indonesia, Sri Lanka and India. As per the data, India’s knitwear exports stood at Rs 53,199 crore between April 2019 and March 2020.
Indian knitwear export
Consumption less than the normal freeze: Meanwhile, due to the global corona epidemic, the normal freeze has been implemented in most countries till 2020. As a result, Indian knitwear exports have declined due to closure of trading companies and fall in demand for knitwear.
Export of knitwear
Out of this, the export of knitwear was only Rs 47,920 crore in 2020-21. This is Rs 5,279 crore less than 2019-20.
Indian knitwear hub Tiruppur exports also decline: About 50 percent of the knitwear exported to India is produced from Tiruppur alone. However, last year there was a decline in the export of knitwear due to the Corona epidemic.
Exports, which stood at Rs 27,280 crore in 2019-20, were only Rs 25,135 crore in 2020-21. This is Rs 2,145 crore less than the previous year.
Rising Yarn Prices
Rising Yarn Prices: Knitwear exports in India and around the world are declining and exporters are worried as prices of yarn, a major component in knitwear production, have started rising.
Tiruppu Exporters Association president Raja M. Shanmugam said:
Due to the corona infection, weaving export trade started declining globally. Weaving companies were closed in Tiruppur in April and May 2020 due to Corona, and the turnover was more than Rs 25,000 crore. Of this, Tiruppur alone accounts for 52.5 per cent of India’s total export trade.
Inflation talks: Therefore, the data shows that there has not been a significant decline in export knitting export trade. After Corona, the price of all raw materials has increased. Similarly, the price of yarn, a raw material for knitwear production, has increased.
Therefore, exporters are urged to negotiate with foreign traders and increase the price of knitwear.
New Autos Arrive: Similarly, he hoped that the existing knitwear export business would increase as new autos are now coming from European countries.
MP Muthurathanam, President, Tiruppur Exporters and Manufacturers Association said:
The price of yarn required for the production of knitwear has also started rising from last January. In the last 4 months itself, the price has gone up to Rs 120 per kg. Because of this, new cars could not be ordered from foreign companies.
Importance of Yarn Export
Importance of Yarn Export: Gujarat, Maharashtra, Telangana and Andhra Pradesh are the major cotton producing states of India. Yarn prices continue to rise despite a 5% increase in cotton production last year.
Yarn exports are high in Countries
Yarn exports are high in China, Bangladesh and Vietnam. Therefore, spinners give importance to exports without supplying the required quantity of yarn for domestic production.
Big companies are profitable
Big companies are profitable: In our study in Tiruppur, only big companies are operating at full capacity. Only big companies having yarn mill, dyeing, printing, compacting, embroidery, sewing, cotton box, transportation are working profitably.
These companies often keep employees in hotels and pay them monthly salaries. But outside companies that buy and sell JobWorks and contract workers are fast closing.
So new cars can be picked up only if the government pays special attention and controls the price of yarn. The same situation prevails at the Indian level as well.
Knitwear Exports (in crores)
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
India 50,150 55,150 51,526 54,692 53,199 47,920
Turn 22,060 23,620 24,060 27,650 27,280 25,135
According to a study conducted in Tiruppur, only large companies are operating at full capacity and making profits. These companies often keep employees in hotels and pay them monthly salaries. However, companies that buy out outsiders and pay contract workers are fast closing. So new cars can be picked up only if the government pays special attention and controls the price of yarn.
Indian knitwear export business fell by Rs 5,279 crore: