The Hindu Business Line : Erode textile producers to ramp up direct exports

To give shape to their objective, the members of the newly-formed Textiles and Garment Exporters Association of Erode (TGEA) have sought to broadbase their forum by calling upon the other textile trade body functioning in Erode, the Export Fabric Manufacturers Association, to merge its entity with the TGEA.

"The Export Fabric Manufacturers Association members meeting among themselves next week will positively consider our request for merging their body with the TGEA which will bring considerable strength to our effort to develop the Erode textile cluster as a strong yarn dyed woven garment export base," said Mr Sivanandhan, Secretary of TGEA.

The Erode-based textile producers have largely concentrated in production and supply of yarn dyed fabrics for conversion as shirting, lungies and other popular traditional items such as dhotis/kurthas and pyjamas leaving the task of marketing to the merchants from Mumbai/ Gujarat/ Delhi regions.

The upcountry textile traders, besides marketing these textile goods in the interior northern markets, have also emerged as successful merchant exporters of textile goods from Erode.

According to Mr Sivanandhan, the value of direct export of textile items by the Erode manufacturers hardly hover around Rs 200 crore whereas the total value of the goods supplied to the upmarket merchant exporters from the region will be around Rs 3,000 crore.

The fairly adequate production infrastructure established over the years in terms of both raw material and production process has now come as a motivating factor for the Erode textile producers to enhance their share in direct exports of textile goods.

The floating of the TGEA will only further this efforts, feels Mr Sivanandhan, who is also of the view that the quota-free regime in global textile trade is expected to change the dynamics of the trade for the Erode producers.

"We have already started getting good trade enquiries from overseas textile importers for regular shipments of yarn dyed fabrics," he said. He hopes that within the next one or two years, Erode producers could raise the value of their direct shipment to Rs 1,000 crore.

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