The Hindu Business Line : Tirupur knitwear units revise job-work rates

The knitwear companies relying on sub-contracting/capacity hiring are expected to bear 10-15 per cent rise in charges for the jobs outsourced, thanks to an upward revision in the rates decided upon in the last few days by different categories of job-working hosiery units in the town.

According to sources in the South India Hosiery Manufacturers Association (SIHMA), a trade body representing the interests of knitwear producers catering to the domestic (local) market, agreements for a revised work contract rates were finalised with at least three categories of jobbers, crucial in the knitwear product cycle.

The knitted cloth manufacturers or cloth fabricators, the stream calendaring units and the cutting and stitching units (called banian power-table owners who convert cloth into finished hosiery goods) letting out their production capacities to the knitwear trade selling their products in local markets would now stand to get higher conversion rates, from this month onwards.

The job-working knitted cloth producers, represented by Knit Cloth Manufacturers Association, will receive 75 paise to Re 1 more per kg of cloth produced by them, depending on the pattern of fabric knitted. Similarly, the rates of charges for stream calendaring have also been revised upwards for the jobbers effective from April 1. The revised charges agreed by the members of Tirupur Stream Calendaring Association will be Rs 140, Rs 165 and Rs 275 respectively per case of 100 kg of cloth (depending on the machines used in the processing).

As for sewing units which convert the processed knitted fabric into hosiery garments, (namely the conventional white and colour innerwears), their conversion charge would be raised by 17 per cent (if their prevailing conversion rate is at or below Rs 23.90 per 12 pieces) and 12 per cent (if their current rate is Rs 24 or more per dozen) respectively as agreed by the Tirupur banian power table owners association.

According to Mr Ahil M. S Mani, President of the Tirupur Industrial Federation, the hike in the hire charges for the jobbers were overdue as they were straddled for more than two years with a rise in cost of inputs such as increased labour, energy and raw material costs. He feels the revised job-work rates may push up the production cost by another 10 per cent.

More Stories on : Knitwear & Hosiery | Human Resources | Tamil Nadu

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