Raja M Shanmugham Raja M Shanmugham, President said as the Cotton and Yarn prices have been increased to an abnormal level, the effect of this hike will trigger a disastrous impact on Tirupur Knitwear garment exporting units including the continuation of workers employed by these units. He further stated that the misfortune will have a cascading effect on all stakeholders of knitwear garment exporting units including Banks and Cotton producing farmers.
Raja M Shanmugham said he has already appealed to Piyush Goyal, Hon’ble Union Minister of Textiles for his immediate intervention to bailout the knitwear garment exporting units from the ongoing crisis after considering the points like losing competitiveness of the exporting units in the global market, sustenance of MSMEs, and also need to protect the employees from the job losses. He further said that he would try to get an appointment with the Hon’ble Textiles Minister mainly to explain the challenging business environment due to negative factors and requirement of right kind of strategy to control the ever-increasing Cotton prices by breaking the cartelization of traders, also to remove import duty on cotton and ban on cotton exports.
As they were running out of solution, Raja M Shanmugham said as a mark of protest, Tirupur garment exporting units will go for a closure of garment exporting units in Tirupur Cluster for two days, 17th and 18th January 2022.
Raja M Shanmugham said the Secretary (Textiles) has called for a meeting with all stakeholders of Textile Industry 06-01-2022 and added that during course of discussion; he would highlight the distressing situation of the Tirupur garment exporting units and would appeal him to protect the value added garment exporting units of Tirupur immediately.
said that he has already sent letters to Textile Mills Associations, SIMA, TASMA and ITF to advice their members not to increase the cotton yarn prices disproportionate to increase in cotton prices as that will totally affect the value added knitwear garment sector and help to have a Win-Win situation of both sectors.