APPAREL SALES PLUMMETS TO A HISTORICAL LOW IN MAY
A Survey conducted by CMAI amongst its Members at the end of May 2020 showed a stunning decline of Sales during the month of May. Compared to the corresponding period of May 2019, the Members surveyed indicated a drop of 84% over last year – and that too,
primarily because some factories had started manufacturing Masks and other PPE products.
The Domestic Apparel Business has reported almost “ZERO” production of regular products in May 2020. ONLY 22% OF FACTORIES OPERATIONAL Contrary to what is thought, the situation has hardly improved even after the easing of
restrictions and attempts to open up the Economy. Our Survey showed that only 22% of the Garment Factories across India have started functioning by end of May. Factories are operating at an average 25% of their capacity. 40% of the factories that have started functioning, are engaged in the manufacture of current essential products like Masks and
PPE products.
ARE BANKS REALLY HELPING?
CMAI’s Survey revealed the surprising fact that as of 15th May, of those who had applied for the additional Working Capital Loan (COVID Line) as directed by RBI, only 26% had actually received assistance from their Bankers. The balance 74% still had their applications in the ‘processing’ stage.
INDUSTRY HEADING FOR DISASTER
The above findings clearly indicate that the Garment Industry is going through an
unprecedented crisis, and unless immediate steps are undertaken to permit unfettered and uniform opening up of ALL Shops, Market Complexes, and Malls (maintaining Social Distancing and Health Check norms), as well as Factories, and the Banks step in to assist the Industry, the Garment Industry in India is heading towards an unmitigated Disaster.
Millions of Jobs are at stake. Timely intervention by Government and Reserve Bank of India can save these jobs and help industry to survive.
