In dollar terms exports registered an increase of only 8 per cent in 2000 compared to 14.67 per cent growth registered in 1999. Though the growth in 1999 could be attributed to the relatively poor performance in 1998 (the year south-east Asian melt-down hit export markets), the margins were clearly under pressure in 2000 calendar.

Tirupur exported 425.50 million pieces valued at $814.70 million during the year under review against 378.40 million pieces valued at $754.30 million shipped during 1999 calendar. The knitwear town in Tamil Nadu contributes around 38 per cent, in value to the total knitwear exports from the country.

In fact, the industry had the advantage of the European Union releasing an additional `flexibility quota' of around 4,500 tonne towards the last quarter of the year. According to the president of Tirupur Exporters' Association (TEA) Mr A Sakthivel, the entire additional quota for category 4 (T-shirts) was exhausted during the year itself. However, part of the 1,800 tonne total share in `flexibility' for knitwear garments is likely to remain unutilised. ``This growth is expected as we move towards a quota free regime. There will be more quotas, available but the margins will be under pressure,'' said a senior industry source in Tirupur. The unit value realisation hit a low of $1.915 a piece in 2000 against $1.9934 a piece in the previous calendar. The industry had seen a high price realisation of some $2.25 a piece in 1996. Though the increase in quantity of low value items like undergarments, in the total knitwear share is claimed to be the reason for the fall in unit value realisations, exporters also agreethat international markets are hotting up. ``Competition is severe now. Countries like Cambodia and Vietnam have started importing inputs like cotton yarn and fabric from China at cheaper rates. The garments thus exported are priced cheap,'' Mr Sakthivel said.

The TEA president had earlier during the year warned of a saturation, unless the industry moved forward to the production of high value mid-fashion garments in the future.

Moreover, the industry is yet to make a significant impact in the export markets with high-value winter garments. The diversification into winter garments, an international fair for which is held every year in Tirupur, would also keep the industry occupied round the year.