TIRUPUR: Domestic trade in Tirupur’s knitwear sector ahead of Diwali was pegged at around Rs 8,500 crore, but manufacturers said order volumes did not rise compared to last year, with the increase largely driven by higher input costs and pricing.R Dhamodharan, general secretary of the South India Hosiery Manufacturers Association (SIHMA), said Tirupur-made knitwear is supplied not only in Tamil Nadu but also to Gujarat, Delhi, Maharashtra, Kolkata, Telangana, Andhra Pradesh and Karnataka. He said trade inquiries for Diwali began towards the end of August and dispatches started from the first week of September.Traders said consignments included T-shirts, track pants, children’s wear, women’s wear and innerwear. Industry representatives estimated domestic trade this year at more than Rs 8,000 crore, up from about Rs 7,300-7,500 crore last year, but said the rise was in value, not volume.Manufacturers attributed the cost pressure to higher prices of yarn, dyeing charges, elastic and packaging materials such as cartons. They said garment prices were raised by about 10-15%, though costs warranted a 20-25% hike, but weak demand prevented sharper increases. As a result, units said they operated with thin margins to avoid losses.They added that yarn prices have not risen recently as the Centre relaxed import duty on cotton and sought an extension of the duty relaxation for one more year, citing the need to leverage duty-free trade pacts and improve exports.In Tirupur’s Khaderpet area, known for wholesale and retail apparel outlets, Diwali-season business was down by around 30% compared to last year, traders said. They said slower-than-expected wholesale demand affected overall trade and that retail sales also declined, attributing part of the fall to online commerce impacting store footfalls. Khaderpet wholesale market, home to over 800 outlets. Traders say only 300 bundles a day are going out, against 500 in past festival seasons.
