Listen to our woes, say Tirupur traders before PM’s Feb visit

Textile trade has been affected in Tirupur, the hub of knitwear products, due to demonetisation, implementation of Goods Services Tax (GST) and tax curbs.

“The textile business grows on availability of free cash flow. But, curbs on direct cash transactions has affected the number of traders visiting Tirupur from other states to purchase knitwear products,” said GS Babuji, general secretary of Seconds Collar Shirts and Inner Wears Small Scale Manufacturers Association. “After demonetisation and GST implementation, the arrival of buyers from other states has dropped by 40 per cent. This has affected the small scale traders, retailers and platform sellers by 60 per cent.”

Until two years ago, a steady stream of traders used to come from West Bengal by Howrah Express. “Our traders would take them to different manufacturers and convince them to buy more than they had planned. Such direct interactions and hands-on feel of products gave us an advantage. But now, they book their limited orders online,” he said.

Small scale manufacturers have urged the Union government to increase the cash transaction ceiling to Rs 10 lakh and the individual tax ceiling to Rs 5 lakh.

Echoing similar woes, Tirupur Exporters Association president Raja M Shanmugham expressed disappointment over the recent reduction in duty drawback from 2 to 1.9 per cent on ready-made garments. Construction of ESI hospital, development of a housing board for labourers, a R&D facility and a knitwear board were some of their demands, he said.

“Tirupur has a workforce of 6 lakh labourers - mostly migrants. About 1 lakh houses and hostels should be built to accommodate 1 lakh more. Due to lack of housing, labourers do not stay permanently and that results in attrition. Their permanent settlement may also help police to maintain law and order,” he said.

Industrialists shared a common opinion that they expected growth once the BJP government took over at the Centre. However, businesses have only worsened in the last few years.

They have decided to meet the PM to express their discontent and demands. “We hope the PM will address our concerns on his maiden visit here,” said Babuji.