The tariffs are severely affecting key export sectors in Tamil Nadu and putting thousands of jobs at risk, he said.
In his letter, the Chief Minister stated that Tamil Nadu was a major contributor to India’s textile, apparel, leather and footwear exports. The state accounts for 28 per cent of India’s textile and apparel exports and provides jobs to around 75 lakh people. It also contributes 40 per cent of India’s leather and footwear exports, employing more than 10 lakh workers.
Stalin said that the situation in Tiruppur, known as the Knitwear capital of India, was very serious. Exporters there had lost confirmed orders worth about Rs 15,000 crore, he said. Many factories had cut production by up to 30 per cent and new orders were also coming down fast, he said.
He said that the exporters in the Tiruppur, Coimbatore, Erode and Karur districts together were facing daily revenue losses of around Rs 60 crore. “Many small and medium units are close to shutting down. A similar situation is seen in footwear clusters in Vellore, Ranipet and Tirupattur districts,” the Chief Minister said.
The Chief Minister said exporters were forced to give heavy discounts to keep their buyers. “This is reducing profits and affecting their ability to compete in global markets,” he added. He said that layoffs and delayed wages had already started, creating problems for workers and their families.
Stalin also said many foreign buyers were moving their orders to countries such as Vietnam, Bangladesh and Cambodia, which currently had lower tariffs. He warned that once buyers shift to these countries, it will be very difficult to bring them back.
Calling the issue urgent, the Chief Minister urged the Prime Minister to resolve the tariff problem through a bilateral agreement with the USA at the earliest. He said a quick solution would help exporters recover and protect jobs.
Stalin said he trusts the Centre would act to protect Indian industries and workers and hoped for an early resolution of the issue.
