After a gloomy phase of a steep decline in orders, exporters in Tirupur region, are seeing some favourable developments to get back to a positive growth curve.
Tirupur exporters are witnessing a surge in order enquiries from the US and Europe, which are likely to be converted into orders in the coming weeks. Added to this postive trend, the fall in cotton yarn prices to earlier levels is expected to improve their competitiveness.
“There are many favourable factors now. The clearance of stocks in shelves and warehouses in a gradual manner and anticipated likely better sales for Christmas and New Year are reasons for receiving orders. While currency is also favourable, the reduction of cotton yarn prices to the pre-surge period is a positive factor to enhance our competitiveness, K M Subramanian, President, Tiruppur Exporters’ Association told Businessline.
Russia-Ukraine war led to poor sentiments and change in buying patterns in Europe and the US. As a consequence, the readymade garments export reported a monthly decline during July-October 2022. With finance and payment-related issues cropping up, exporters in the Tirupur cluster had sought a bailout package for the MSMEs. Recently, they also sought a hike in interest subsidy to 5 per cent under the interest equalisation scheme.
Even as they await government support, there appears to be a gradual recovery in order enquiries on the back of calibrated buying from developed markets.
“Excess inventory and moderating retail sales are bringing pressure in the volume of orders. Retailers are expecting good sales during Thanksgiving and Christmas,” said Prabhu Damodharan, Convenor, Indian Texpreneurs Federation.
Exporters are upbeat on a steady and gradual recovery from January 2023 across all product exports, including apparel and March 2023 quarter is likely to be a positive one.