China’s Coronavirus shutdown will also affect the Indian Apparel and Textile Industry, with both pros and cons. The prevailing situation in China along with the uncertainty of production commencing, is posing a major issue for Indian manufacturers who are dependent on supply of raw materials from China. Meanwhile, global apparel brands will have to look at alternate manufacturing destinations such as India.
1. INDIA’S YARN EXPORTS TO CHINA CURTAILED
On an average, India exports 20-25 million kg of cotton yarn a month to China. Cotton yarn prices have fallen by three to four per cent in the domestic market as traders anticipate a curtailed demand from China due to the prevailing situation there. Further prolonging of the Coronavirus will result in the decline in China’s imports of cotton yarn and hence, impact the cotton yarn export business in India. This will divert India’s surplus cotton yarn to the domestic market, further reducing the price of cotton yarn.
2. ISSUES IN IMPORTS OF SYNTHETIC TEXTILES AND TRIMS
This story is from the March 2020 edition of Apparel.
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This story is from the March 2020 edition of Apparel.
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