Anantapur: Increasing raw material costs push jeans industry into crisis

Rayadurg (Anantapur): More than Rs 1,000 crore jeans exported to countries abroad and to metro cities within the country, is now in doldrums due to economic slowdown which paralysed production and exports and earnings of women. Jeans pants industry which was at its peak of glory until early 2020, has not picked up with people's purchasing power dwindling.

Raw materials including colours, threads, zips cost doubled making it difficult for manufacturers to handle financial investment deficit. The industry was hit hard by two waves of Covid pandemic. The town dubbed as jeans town used to export jeans garments including pants, tops and bottom ware on a massive scale. But today the industry is going through a turmoil with several units downing its shutters and downsizing its workforce from 50,000 strong women workforce.

The jeans business turnover which crossed Rs 1,200 odd crores annually in the town, has fallen to less than 50 per cent. From a production of 10,000 jean pants a day, production has fallen to 2,000 jean pants, say Shivaraj, secretary of Rayadurg Readymade Garments Association.

Due to declining export business, no one is willing to supply materiel on credit basis. Besides, the prices of raw material, has shot up abnormally, adds Rama Naik, a raw material supply agent. Kalyanram, a jeans garments producer, bemoans that the coronavirus has cast its dark shadow on the town affecting more than 35,000 workers in the district and also on jeans production which declined by 50 per cent. Business got badly affected with prices of raw material and transport cost rising. Disruption in transportation due to pandemic, particularly in states like Kerala, Karnataka, AP, Tamil Nadu and Maharashtra states also lessened the volume of business and thereby its production.

Rajini Kumari, a home-based garment woman trader, told The Hans India that she had taken to this business to supplement the meager financial income of her husband. Rajini stated this home-based business was the best bet for housewives, who can sit in the house and safely earn at least Rs 10,000 a month but now prices have gone up and everything is in a mess with financial constraints and many regular buyers are insisting on instalment payments to continue purchases while the company suppliers are not encouraging partial payments as before. The earnings of 35,000 odd workforce have dipped by 50 per cent as production has dwindled by more than 200 per cent.