Industry And Cluster | News & Insights

The prohibition on Chinese cotton has resulted in output losses for Noida apparel manufacturers

Published: August 31, 2021
Author: Manali bhanushali
Noida’s apparel manufacturers are incurring output losses as a result of the international prohibition on Xinjiang cotton. Following claims of human rights violations against Uighur Muslims, who are largely employed in cotton production, the United States and a few other nations prohibited the import of cotton from China’s Xinjiang region in July.
As a result, Chinese manufacturers have cut domestic production and ordered enormous quantities of cotton yarn from India and other Southeast Asian countries. As a result, domestic yarn and thread costs have risen, as the majority of Indian cotton is now shipped to China.
The prohibition on Chinese cotton has resulted in output losses for Noida apparel manufacturers.
Manufacturers in Noida said yarn prices had gone up by 70-80 percent in India, leading to an increased cost of production. Since neighbouring countries like Bangladesh are exporting garments at cheaper rates, the losses have mounted all the more. Apparel makers said the increasing yarn export could also lead to job losses since it is not a labour-intensive industry.

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