A Clothes Manufacturing Association of India (CMAI) done a survey of around 1,000 apparel factories for the sales of apparel from March to find out the impact on it in the current pandemic period. The report showed a historical fell of 84% in apparel sales due to the pandemic of COVID-19
By May-end only 22% of the factories were operating while 40% of them manufactured personal protection equipment (PPE). Over 83% of the factories surveyed with global marketing research firm’s AC Nielson’s help reported sales of under 5% sales in May compared to the same month last year.
Rahul Mehta, the chief mentor of CMAI, said: “the industry, which contributes 4 to 5% to India’s GDP, employs close to 12 million people, out of that approximately 50% of the labour force is migratory.”
On referring the survey report Rahul Mehta said that the apparel market was worth Rs 6.5 lakh crore in 2019 and they estimate it to shrink by 15% this year to around 5.85 lakh crores., Even most of the brands and retailers would be unable to achieve over 15- 20% of their 2019 first-quarter sales in April-June quarter.
South India Mills Association secretary-general K Selvaraju said “the industry lost about 5,500 crores daily during the lockdown and the journey ahead does not look easy. Exports accounts for 30% of the revenue and most orders have been cancelled or delayed now.”
D K Nair, Former Confederation of Indian Textile Industry (CITI) secretary-general said the export demand is likely to fall further as the largest exporter, the US, is also facing anti-racism protests along with the pandemic. He added the US and Europe account for 60% of exports from India.
Nair said there will at least 50% revenue loss and restarting the industry will be especially tough. Medium or small-scale enterprises which account for 80% of the industry many would be unable to tide over the revenue dip. He said the business would only get tougher if the number of Covid-19 cases in Mumbai, Chennai and Delhi does not reduce. “They are the main trading centres and right now, they are Covid-19 hotspots. Nothing is moving there,” said Selvaraju. “Production across the industry, whether it is in spinning, garments, yarn, has come to standstill.”
Also, as per the officials of union textile ministry, even the demand was at an all-time low and even the government was unable to sell its stock. The export market is diminishing as well. Only 10% of the stock has been sold in the last 15 days. Sales of Luxury products is reduced.
Further, they said that the National Textile Corporation Limited has a stock worth Rs 130 crore but no buyers. “Rs 70 crore worth raw material is also lying unused.” Yet they have not added the loss for the stock that is piling up at mills and centres up to May, because the market where shut.
Dr Sundaram, Indian Technical Textile Association chairman, said “the Centre’s order for 20.2 million PPE kits at Rs 635 total of Rs. 1,400 crores these have helped some offset huge losses for the last three months. This is nothing compared to the overall losses.
In order to help the textile industry, CITI has written to Indian Banks Association for an extension to the moratorium on repayment of term loans until March 31, 2021.
