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Slow revival and high input costs hurt garment makers

Jul 07, 2021
Slow revival and high input costs hurt garment makers

Tiruppur

The garment industry has been severely affected after the second wave of the coronavirus. Hosiery and knitwear manufacturers are still struggling to revive. As per the data, garment manufacturers are taking a 3 to 4% margin in order to absorb the input costs. They are also struggling to pace up the production because of the scarcity of workers.

According to KB Agarwala, Managing Director, Rupa, the manufacturing hubs in West Bengal and Tamil Nadu are still not able to get back to 100% production due to restrictions on local travel for workers to return. This has created a gap between demand and supply. He also said that the supply has gone down by 50%.

As per Raja Shanmugam, the President, Tiruppur Exporters Association of Tamil Nadu, the production will come to the track within two months and will bridge the gap between domestic demand and supply. He also said that the manufacturers are already working at thin margins of 5-7% but they cannot pass on input costs completely, so they are now taking a 3 to 4% hit on the small margins.              

As the prices of the inputs are increasing, manufacturers are worried. The repeated hikes in yarn and cotton prices have also caused a lot of trouble to the companies. Agarwala explains that the prices of the products cannot be increased any further because the buyers have started to resist now.

Source – ET Now News

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https://indiantextilejournal.com/latest-textile-industry-news/rising-input-prices-raise-garment-production-cost