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L.N. Revathy

Coimbatore, Jan. 11 The going appears tough for the 300-odd home textiles exporting units in and around Karur. These units have all along depended on the US and European markets for exporting a range of home textile items such as mats, table covers, bed sheets, curtains and carpets.

The financial and economic turmoil in the US and the slowdown in the European markets have started to impact the home textiles sector here adversely. A majority of the units, according to Mr M. Sivakkannan, President, Karur Textile Forum, are on the verge of possible extinction.

“Shrinking orders, declining export volumes, idle capacities and lack of Government support have already pushed us to the wall. We see no light at the end of the tunnel,” he said.

Home textile exports from this region is said to be around Rs 3,000-3,500 crore. Industry insiders say that this has fallen by 30 to 35 per cent (volumewise) in the past six months.

“Fresh bookings are not happening because of the downturn in the US. I have not encountered such a situation in the past. There was a lull for about six months after the 9/11 twin-tower attack. But the volumes started to pick up thereafter. The present crisis not only looks prolonged and unprecedented, but is crippling the exporting community,” Mr N. Sai Prasad, an exporter (with 18 years experience in home textile exports) told Business Line.

According to him, Karur did not receive any good orders during the Christmas season and the situation was getting worse by the day.

The sector had to resort to lay off its workers following the steep decline in export volumes and to severe power cut. About 30,000 workers are reported to have been displaced and the number is on the rise.

The Forum has sent a memorandum to the Prime Minister, Dr Manmohan Singh, seeking immediate intervention and measures such as withdrawal of fringe benefit tax and service tax, refund of service tax paid the beginning of this fiscal, a 4 per cent increase in drawback for exporters, export packing credit to be slashed to 7 per cent and waiver of bank charges to bail out the ailing sector.

“We are also requesting that the interest on term loan be brought down to 8 per cent and a 24 months moratorium on repayment of the term loan,” Mr Sivakkannan said.

More Stories on : Textiles | Exports & Imports | Tamil Nadu

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