Tirupur: Due to the unfavorable environment in the competing countries and the decrease in the price of nil, the industrialists of Tirupur have stepped up to secure export orders from the American and European countries.
Tirupur’s export trade faced unprecedented challenges, including the rise in prices of cotton and wool. Faced with extreme challenges, the knitwear industry struggled to survive.
Zero is cheaper
After the abolition of duty on import of cotton wool, the situation gradually improved. Now that the cotton season has started, the price of cotton has come down to Rs 130 per kg.
Exporters have initiated fresh order inquiry as nil price is favourable. Although the country’s overall readymade garment exports declined slightly, the six-month trade showed good progress.
Last year, in the first six months, ready-made garments were exported to the tune of 54,245 crore rupees. This year, 64 thousand, 017 crore rupees have been exported. 8,554 crore exports for the month of September due to rise in nil prices.
A challenge to rival nations
With oil prices down, foreign orders are also returning to India. In American and European countries, the acceptance of Indian clothes has increased. In Bangladesh, fuel costs have increased due to power outages.
Sri Lanka also has an uneven economy. The United States has imposed a ban on cotton grown in some parts of China. Due to the rise in the value of the dollar, the Bangladesh Central Bank has imposed restrictions on lending to LC.
Dissatisfaction with China
In Pakistan too, the electricity tariff has gone up several times, which has crippled the small and micro enterprises. After the spread of Corona, the attraction towards China has also decreased.
As far as India is concerned, countries like China, Bangladesh, Pakistan and Vietnam are the main competitors in the export trade of American and European countries. The US and European countries, which had only traded directly with rival countries, wanted to strengthen ties with India through the new order.
Export trade agencies, having learned the lesson of last year, have gone full steam ahead to bring in orders this season. Companies that used to trade only with China, Bangladesh and Pakistan have also opted for India this year.
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