Tirupur, which generates over $4 billion exports of knitwear for India, has been badly hit by the Ukraine war resulting in 40 percent reduction in orders according to a letter written by Tamil Nadu chief minister to Indian Prime Minister Modi.
Tirupur is one of the largest knitwear exporting hubs of India catering to markets in the US and Europe. Around 95 percent of the units are MSMEs. According to industry representatives some units have closed but the majority are still operating for three to four days a week. The exports were also impacted by high yarn rates. The rate of 30 count yarn that was Rs220 per kg at the start of the year jumped to Rs440 per kg in April-May. The high prices were not viable for the exporters.
The share of Tirupur in Indian knitwear exports was 54.4 percent last financial year. The knitwear hub generated $4.51 billion last year. The exports target for this year was fixed at $6 billion that is unlikely to be achieved. The Tirupur Exporters and Manufacturers Association blamed high yarn rates as one of the reasons for lower exports. The association said that competing exporters from China, Bangladesh, Vietnam and Cambodia took advantage of high yarn rates in India and grabbed summer orders.
