TEA expects 15% rise in garment exports in Q2

Tirupur garment exporters expect exports to grow at least 15 per cent (by volume) and 10 per cent by value for this quarter. As per Raja Shanmugham, Head, Tirupur Exporters Association, the demand pull has been so strong that exports for the current fiscal may top last years’ Rs 25,000 crore even though more than two months were lost due to lockdown and production impairment due to labor shortage.

Not just exports, the high stocks of domestic brands have also been driving business. The association expects domestic supplies to overtake exports, if the present demand continues,: Shanmugam added. Tirupur usually exports 60 per cent of its merchandise and the rest is despatched to the domestic markets.

Dr A Sakhtivel, said the American embargo on exports of cotton from China and knitwear made using Chinese cotton is helping Indian exporters. Several brands are now avoiding China and coming to Tirupur, he added

Garment exports from Tirupur dropped to Rs 25,000 crore for the year ended March 2020, from Rs 26,000 crore in the previous year as COVID pandemic wiped away most of March exports. The target was to export garments worth Rs 28,000 crore. Domestic sales were flat at Rs 25,000 crore for the fiscal. The town employs 6 lakh workers, half of whom are guest workers from other states.