Goods worth ₹2,500 crore are exported from the district every month
Garments worth ₹5,000 crore shipped by exporters in Tiruppur are stranded in the seas or ports as these have not been lifted by the buyers in the US, Canada, and the EU.
Raja Shanmugham, president of Tiruppur Exporters’ Association, told The Hindu on Friday that buyers in the western countries are not encouraging new shipments. With complete shutdown in several western countries, exporters are receiving information from the buyers of either cancelling or deferring orders. The goods already shipped have to be at the port as there are no clearances and warehouses are closed down in these countries because of the spread of COVID-19. For the garments shipped in January and February, the exporters will receive the payment in March.
Approximately, goods worth ₹2,500 crore are exported from Tiruppur every month.
“Goods worth ₹5,000 crore are stranded and garments worth another ₹2,500 crore are with the exporters. We need to wait and see what the situation will be next month,” he said.
In the domestic market too, retail sales have dropped and local brands have adopted a wait and watch approach. So, manufacturers in Tiruppur supplying to the domestic market are also hit. Their payments will get delayed too.
“The Government should come to the aid of the exporters with immediate announcements. It should advise banks not to insist on repayments for some time,” he said.
At a joint meeting of all the industrial associations held in Tiruppur, it was decided to continue production to the extent possible.
“But, we have limitations. What we are facing now is unfortunate and unforeseen. So, the Government should act immediately,” he reiterated.
Meanwhile, powerloom cloth producers in Tiruppur district have announced that they are stopping the looms. The job working units are receiving the raw materials and will continue to operate. They will review the situation next week.
Published On : 21-03-2020
Source : The Hindu