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Tirupur exporters debt is Rs.6000 Crs

Written By Views maker on July 20, 2009 | 7/20/2009

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image  The Tirupur garment industry, which is the country's largest knitwear export hub, has also confirmed the position was very bad all over. This industry has to repay as much as Rs 6,000 crore to banks and other financial institutions.  While acknowledging the industry outstanding is huge, it was not recession alone which hit the industry but also shortage of power.  Despite these problems industry was getting inquiries, but we could not deliver goods on time and offer a competitive price. Yet, customers are willing to place orders only if we can match the prices of the Chinese and Bangladeshi firms. Chinese are quoting 20 per cent less and Bangladesh 30 per cent less compared to Tirupur exporters. Extra power, raw material and interest costs are making Tirupur garments costlier and uncompetitive. According to TEA's data, exports from Tirupur dropped to around Rs 9,500 crore in 2008-09 from Rs 11,000 crore in 2006-07, a drop of around 13 per cent, the first time that Tirupur exporters have witnessed a drop in the exports.