Following an increase in COVID-19 cases in China, the Indian textile sector is becoming cautious. The risk of the pandemic and the interruption is currently being evaluated by industry and trade specialists. A few merchants claimed that manufacturers have already cut back on their purchases. Additionally, certain limitations and COVID-19 protocols have been re-established by the Indian government.
Due to the economic downturn and excessive inflation, the worldwide market’s demand for textiles is weak. The cost of production is rising along with the price of cotton and other fibres, which is reducing manufacturers’ profit margins. The new COVID wave risk adds to the industry’s difficulties, which already include unfavourable market conditions.
Trade sources said that market sentiment further dampened after reports of COVID spike in China and rising risk in India. There is a general sense of uncertainty in trade because buyers and sellers are clueless about the future scenario of pandemic.
Due to its close proximity to China, some scientists believe that India could be a vulnerable target for the pandemic, while others believe that the country has already passed its deadliest COVID wave, which struck in April–June 2021. Trade activity, according to traders, won’t be hampered unless lockdowns are implemented.
“Manufacturers have decreased their purchases because they do not want to take on further risk,” according to Ludhiana trader Nikhil Jain. Losses have already been incurred as a result of the poor demand and high production costs.
However, a dealer in Delhi seemed upbeat. He predicted that things probably won’t go worse as much as they did earlier. In the coming week or two, everything will become obvious. In the coming weeks, it is hoped that China’s situation will be under control and that the current wave’s effects would be less severe than before.
A Bathinda cotton trader was similarly upbeat because he planned to benefit from the growing demand for Indian cotton and yarn following a disturbance in the Chinese market. “A large increase of COVID cases in China may disrupt regular trade and business,” he warned. Most likely, this will have an impact on China’s exports of cotton, yarn, and fabrics to India and other nations. As a result, demand may shift to India, which could sustain textile product prices.
