Garment exporters in Tiruppur and home textile exporters in Karur have decided to stop production from Tuesday. Textile mills in the State will decide according to their order positions.
Raja Shanmugam, president of Tiruppur Exporters Association, said Tiruppur Collector K. Vijayakarthikeyan had a discussion with the industry heads in Tiruppur on Monday and instructed them to stop production activities. Based on it, the units decided to down shutters till March 31. Tiruppur has over 1200 exporters and thousands of supporting units. Together the industry employs nearly six lakh workers. The entire chain, including industries supplying to the domestic market, will come to a halt from tomorrow, he said.
Mr. Shanmugam added that industries were facing severe financial crisis and hence Government should extend financial support to pay wages to the workers for this period.
The market is also not accepting the goods. The District Administration has also given orders to stop all trading activities in the district, he added. It is estimated that the goods worth ₹750 crore will not be produced from Tuesday for eight days.
M. Nachimuthu, president of Karur Exporters’ Association, said about 500 exporting units that employ nearly two lakh workers in Karur have decided to stop production from March 24 to 31. The units will pay wages to the workers for these days. The annual export turnover of Karur is nearly ₹5,000 crore. Just 20 % of the buyers are willing to take the orders placed. However, exporters face challenges in sending these goods too, he said.
The Southern India Mills’ Association has communicated to its members, who are mainly textile mills, that many industries have suspended their operations and shut down the units till March 31 or till normalcy is restored to prevent the spread of COVID-19. Those units that are not in a position to operate the mills are advised to provide lay off to the workers. But, in the case of lay off, 50 % of the wages need to be paid, till suspension is revoked.
M. Senthil Kumar, head of the Palladam Hi-Tech Weaving Park, said several weaving units in the State have already stopped production. But the units will need to pay wages to the workers. And, continue to pay fixed charges and taxes. So the Government should come out with announcements on supporting the industry financially.
