Tamil Nadu: Due to the repercussions of the Iran-US conflict, manufacturers in Tiruppur have decided to increase clothing prices by 5 percent.
Tiruppur’s knitwear export business is typically adversely affected during times of international crises and wars. Currently, the impact of the Iran-US conflict is being felt across neighboring nations; in particular, India’s export trade has been severely hit. Rising raw material costs have adversely affected not only exporters but also domestic knitwear manufacturers.
Companies engaged in “job work” play a pivotal role within the knitwear industry. Due to steep hikes in the prices of dyes, chemicals, firewood, and coal, dyeing charges have been raised by ₹20 over the prevailing rates. Imports have also been impacted, as the costs of plastic materials and sewing threads—essential for the packing and processing sectors—have likewise surged.
Consequently, production costs have escalated across various segments, such as job work operations and elastic manufacturing. This has resulted in an overall increase in the total cost of knitwear production.
Following the Pongal festival, orders for the upcoming Ramadan festival were received from various states; these have since been produced and dispatched. Subsequently, Tiruppur was gearing up in full swing to commence production for summer clothing orders.
Amidst this scenario, the Iran-US conflict has triggered a sudden spike in the prices of raw materials derived from petroleum products. As a result, the job work units have temporarily raised their production charges.
In the interest of the trade and to offset this financial impact, a proposal has been put forward to increase production charges by up to 3 percent. Manufacturers are currently holding internal consultations to deliberate on this matter.
