Tiruppur knitwear sector struggles under government policies, say labor unions.

Tiruppur's knitwear industry, a major hub for textile production, is facing significant challenges due to what the Federation of Labor Unions calls "detrimental policies" by the Union Government.

The Federation specifically points to demonetization, a policy that banned high-value currency notes from circulation in 2016, and the implementation of the Goods and Services Tax (GST) in 2017 as factors that have "greatly impacted the cotton and textile sector," according to a press release from the union. "Demonetisation caused a cash crunch, disrupting our business flow," said R. Vijayakumar, president of the Federation of Labor Unions, highlighting the immediate impact of the policy. "The added complexities of GST further burdened small businesses, leading to a decline in production and order flow."

The Federation further argues that the Indian government's decision to allow cotton garment imports from Bangladesh has worsened the situation. This policy shift has "caused traders and cloth merchants to move towards cheap garment imports," the release states, leading to "huge losses" for Tiruppur's knitwear industry.

The story of Tiruppur's knitwear industry is one of recent struggle, according to both workers and business owners. Factory ownders say they have seen a decline in business over the past few years. The rise in yarn prices and the unpredictable market haven't made things any easier.

Tiruppur's success stemmed from the hard work of both entrepreneurs and laborers, many of whom are migrants who came to the city seeking better opportunities. But these recent policies threaten the very foundation of our industry.

The future of Tiruppur's knitwear industry remains uncertain. The Federation of Labor Unions is urging the government to address the issues raised in their press release, emphasizing the need for solutions to "safeguard the future" of this vital industry.