Tirupur knitwear industry cashes in on unemployment in Nilgiris

The knitwear industry in Tirupur has received an unexpected boost from the crisis in the Nilgiris tea industry. The shrinking employment opportunity in the tea estates has provided a way out for the workforce-starved knitwear industry in Tirupur.

Exploiting the dwindling opportunity for employment in Nilgiris, the knitwear units in Tirupur are outsourcing cheap works like embroideries on T-shirts and fixing shiny materials on clothings. Knitwear agents from Tirupur bring in the materials, distribute to the women and collect the finished materials, which they take back to Tirupur for further processing.

"There is a shortage of skilled labour in the industry. Moreover a majority of the workers are from remote areas who prefer to go on long holidays during festival season. This hinders the completion of the orders on time," a source from the Tirupur Exporters' Association (TEA) told Business Standard.

"Besides, the strength of the workforce is not enough compared to the rising export orders. Hence, manufacturers prefer outsourcing to get their work done in time," he adds.

The prevalence of frost, the decreasing demand and low price owing to inconsistency in quality have prompted the Nilgiris tea growers to diversify their business.

With the frost that hit the estates in the month of November still continuing, thousands of plantation workers and small tea growers are left jobless as the yield of green tea leaf is fast nearing the lowest level in the rural areas of the district.

Over the years, the employment opportunity has become almost nil in the Nilgiris. Most of the tea companies have shifted their base, closed or changed hands. As the income from the tea has come down, the small growers have started selling Silver Oak trees, which are used to provide shade to tea bushes, to manage their expenses. This situation is likely to last till the fresh yield is harvested in June.

Tirupur accounts for 90 per cent of India's cotton knitwear export, worth an estimated Rs 5,000 crore. The industry earns more than $800 million annually in foreign exchange.