Coimbatore
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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