The Tirupur textile hub is one of the major textile centres of the country. The central government is planning to develop 75 such major textile hubs across the country in a bid to promote the Indian textile sector. However, this ambitious project of the government might face some major issues due to the rising prices and a dearth of raw materials required to sustain the existing cotton-based industries in the country.
Cotton prices have peaked, reaching a 11-year high mark, with rates being almost 30% more than those of the past year. This primarily due to halt in production processes and a very high domestic and export demand. About 10% of the spinning hubs in the Tirupur belt have been closed down and most of the others are functioning at half of their capacities.
The competition in the cotton products is high, with players like Bangladesh, Vietnam and Indonesia producing cotton products, including garments at a relatively cheaper rate. Thus, most of the export orders are being diverted to these other nations taking a toll on our industry. The government is trying for remedial measures to get better yields in the coming years so as to sustain our industries and develop some new ones.
