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Rising input prices raise garment production cost

Jun 18, 2021
Rising input prices raise garment production cost


The production cost of garments has gone up by 30% as compared to that in December 2019 because of the increase in the price of raw material, according to garment exporters in Tirupur.

According to Raja M Shanmugam, President, Tirupur Exporters Association, the prices of yarn have increased by 40% in the last six months despite the lockdown. He also said that the goods were sent through air cargo instead of ships due to the lockdown. This change in the mode of transport was also a costly affair. He also said that the export margin is merely 5-7%, so the losses will also be huge.

According to Kumar Duraisamy, an exporter, the production was happening with just 25% of the workforce, and also lesser goods were produced though the fixed cost of the building and electricity remained the same. He also said that during this lockdown, many export orders were pending while in the last lockdown the exporters could finish their orders. The two lockdowns cannot be compared as one was at the end of the season and one is in the middle, he added.

As per GR Senthilvel, Secretary, TEMA, the main impact of lockdown will be felt once all the industries will start functioning again. He also said that the lockdown relaxation has instilled confidence among buyers which will help exporters retain buyers in the future.

Source – The Times of Inda

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