TEA, Tirupur: Write to the banks seeking help to tide over the financial crisis

17 May 2022, Mumbai:

The Tirupur Exporters’ Association (TEA) on Wednesday wrote to heads of all the banks seeking help to tide over the financial crisis faced by the knitwear exporters, mostly small units, who are reeling under the high yarn prices.

TEA has asked all the banks to handhold the exporters who are customers of the respective banks and provide ample financial assistance.

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TEA president Raja M Shanmugham pointed out that the Tirupur knitwear sector is now passing through a difficult situation at its peak again due to the unprecedented surge in cotton prices of more than double and subsequent hike in the yarn prices, which also doubled compared to last year.

Tirupur knitwear sector comprises 95% of MSME exporters and is solely dependent on bank funds for their operations. He said TEA is seeking bank support from their MSME customers to tide over the liquidity crisis and help them bring back normalcy in their export business.

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Highlighting the graveness of the issue at hand, he said that around 18 months ago, the knitwear units could buy one kilogram (kg) of yarn for Rs 200 whereas now, with the same amount, the units could buy only 400 g of yarn.

TEA had appealed to the textile mills associations SIMA Coimbatore, TASMA Dindigul and ITF Coimbatore to advise their members to revoke the cotton yarn price hike of `40 per kg for all counts immediately and restore it to April 2022 price level.

“We apprehend that the severity of impact on the value-added knitwear garment sector will have a cascading effect on each stage of manufacturing and thousands of workers employed with these units, apart from the banks,” Shanmugham had said in a letter to the Union textile secretary.

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CREDITS: TEA Tirupur (The news article has not been edited by DFU Publications staff).