European apparel brands have slashed garment offtake from Tirupur and Noida by up to 25 per cent as the they cut discretionary expenses due to the uncertainty in the region about the fallout of the Russia-Ukraine war.
As all the big global brands have closed shutters in Russia, the order flow from Europe has dwindled. Tirupur exporters fear that in FY23 exports may come down by 20%-25% if this trend continues. The garment hub annually exports Rs 35,000 crore worth of goods.
“It is not that the European buyers are not placing orders. But the volumes have come down. Also, yarn prices have gone up by 110 per cent since 2020. The buyers have already absorbed the increase in prices by two to three times,” said Raja Shanmugam, president, Tirupur Exporters Association (TEA).