The increasing number of fake buyers has led to a huge loss for garment exporters in Tirupur.
Fake buyers manage to get delivery of garment products from exporters and deceive them when settling the amount for those products. Sometimes buyers debit huge amounts from exporters by finding defects in the products. In addition, some buying agents join hands with fake buyers to dupe garment manufacturers.
Garment manufacturers in the Tirupur hub depend on buyers who purchase garment products from them and export these to foreign countries.
Small and medium garment industries have suffered a lot and some of them have closed their units due to heavy losses.
Work is on to identify these fake buyers and agents. A blacklist of such buyers will be drawn up. Details of garment exporters, who were mercilessly duped by such fake buyers and agents, will be posted on a website in the hope that this will help other garment exporters avoid being duped.
A committee will be set up with legal advisors to help the suffering garment manufacturers begin a legal fight against fraudulent buyers.
The Tirupur cluster has been facing a slow decline over the years. In 2004, India was a global leader in knitwear, just next to China. With the growing global market in Bangladesh, Cambodia, Vietnam, Sri Lanka, Myanmar and Ethiopia, it is no longer in the top position.