Home textile exporters from Karur foresee a tough time ahead due to the trade tension between India and the USA following the imposition of 25% import duty, plus penalty, on goods from India.
According to industry sources, the value of exports of home textiles such as bed linen, table covers, kitchen cloths, mats, sofa covers, is about ₹2,000 crore per annum. It constitutes 30% to 35% of the total value of exports from Karur. Nearly 200 exporters focus mainly on U.S. markets.
At present, most of the home textile items attract import duty between 3.5% to 12%. There are exporters who export through e-commerce platforms that attract no import duty up to consignment value of $800. With the United States imposing higher tariffs, the exporters fear that they will feel the heat of declining export volume in the near future. To avoid higher tariffs, the exporters have taken extra efforts to book the items, which are at ports and transit shipments, as early as possible.
“We anticipate a tough time as consumers will think twice before buying any product that is priced at 25% more than the existing price. The importers will naturally avoid goods that attract higher import duty and look for other options. Our priority is that the current volume of exports should not be affected,” says R. Gopalakrishnan, Karur Textile Manufacturing and Exporters Association.
