The Tirupur Exporters’ Association has said that knitwear exports from Tirupur are likely to decline by Rs 5,000 crore to Rs 12,000 crore due to the closure of dyeing and bleaching units following zero discharge issues.
Due to the processing problem since January, the exports could be in the range of Rs 11,500 crore to Rs 12,000 crore this year, sustaining last year’s exports, Tirupur Exporters Association (TEA) President, Mr A. Shaktivel, told PTI.
This is not due to an increase in the quantum of exports, but because of the increase in garment prices, he said.
“Prices of garments have gone up by about 18 per cent, which shows increase of exports in value terms. However, in terms of volume, there has been no increase. Considering the demand, exports could have easily been in the range of Rs 18,000 crore if the situation was normal,” he claimed.
He further stated that the industry has been struggling for the last three years due to various reasons, including cotton and cotton yarn price fluctuation and was showing signs of revival, “when dyeing units crisis splashed water on it’’.
Following the permission to run three Common Effluent Treatment Plants (CETPs) with zero discharge, about 140 dyeing units are expected to function in two to three months.
This would increase the production and processing by 50 per cent, he said, adding that in another six months, more CETPs are expected to adopt zero discharge facility.
On exploring newer markets, Mr Shaktivel said signing of duty free status agreement could result in Japan being a good market, as they import 99 per cent of its needs from China. If India can penetrate Japanese market and garner at least 5 to 10 per cent of the business, it would be a boom for apparel sector, he said.