TIRUPUR: Prices of innerwear, nightwear, T-shirts and kidswear are set to rise by around 5% across the country as the South India Hosiery Manufacturers Association (SIHMA) has announced a revision citing higher production costs.SIHMA vice-president S Balachandar said Tirupur’s domestic knitwear industry, estimated at around Rs 30,000 crore, produces a wide range of garments including innerwear, T-shirts, track pants, nightwear and kidswear. The sector comprises around 2,500 manufacturing units and provides direct and indirect employment to more than five lakh people.SIHMA has around 750 branded apparel companies as members, including Ramraj, Poomex, Poomer, DSP, Prisma, Prithvi, SKC, Twin Birds, Essdee, Priya, Rupa, Dollar, Dixcy, Lux and Tantex.The revision follows a sustained increase in input costs.He said cotton prices had touched around Rs 74,000 per candy, while hosiery yarn prices rose by up to Rs 70 per kg over the past three months. Labour costs and charges for dyeing, elastic, processing, stitching and transportation have also increased, adding pressure on manufacturers.According to the association, overall production costs have gone up by around 20%. Manufacturers had initially announced a 10% increase effective Saturday, but weak demand in the domestic market made it difficult to pass on the full rise to consumers, leading to a revised hike of around 5%.Balachandar said innerwear for the domestic market is typically made with around 90% cotton and 10% man-made fibre (MMF). For outerwear, manufacturers increased the MMF share from around 50% to nearly 70% about five months ago due to reduced cotton availability.He added that raw-material suppliers are seeking payments within 45 days. At the same time, garment manufacturers are unable to extend longer credit periods beyond 45 days to wholesalers, distributors and retailers, tightening liquidity across the supply chain.Despite intermittent slowdowns in recent months due to the yarn price surge, production has picked up ahead of Diwali. Cotton, yarn and fabric manufacturer Angu Ananda Prasanna said garment makers advanced their festival production schedule this year. With Diwali falling on Nov 8, consignments must reach markets by the end of September.Production typically rises by around 20% during September and October for the festive season, with supplies planned for markets including Delhi, Maharashtra, Andhra Pradesh, Telangana, Odisha, Karnataka and Kerala.Prasanna said work that normally begins in the first or second week of September started about one-and-a-half months earlier this year, based on last year’s sales. Manufacturers began procuring yarn and producing garments early due to labour shortages, weekly yarn price increases and concerns about raw-material availability.Balachandar said manufacturers are concerned about meeting orders and claimed yarn exports were contributing to the price rise. SIHMA urged the Union govt to ensure uninterrupted domestic availability of yarn, cotton and other raw materials, citing the need to meet festive demand and leverage India’s free trade agreements with 38 countries.
