TODAY -

How COVID-19 Lockdown is impacting Indian Apparel and Textile Industry ?

Oinam Roselyn Devi *

 Powerloom and Alied Service Centre Inauguraton :: 06 April 2014
Powerloom and Alied Service Centre Inauguraton on 06 April 2014 :: Pix - DIPR Manipur



For the past two months, what India and the world have seen is beyond unimaginable. Since the outbreak of the coronavirus began in china at the end of 2019, the virus is taking its toll on the global economy. The outbreak has affected the Apparel and Textile Industry globally as well as in India.

The demands for textile products in the global and domestic markets have come down due to the panic situation created by the COVID-19 outbreak. The governments directed to close all the malls and retail outlets to challenge the outbreak; almost all buyers are canceling and postponing their orders, results in disruption of supply chain and declining exports.

At present, textile processors have been facing severe liquidity due to uncertainty in orders.

Retail Stores closing and future demand uncertain

The United States and the Europe are two largest India export destinations, now becomes the worst affected countries by this pandemic, thus there has been a major fall in demand. The pandemic has killed more than 2.5 lakh people worldwide, with nearly three-quarters of the deaths being reported in Europe. The US has reported over 86,000 death cases.

Many retailers across the globe have declared the temporary closing of their stores to stop the spread of viruses. Large number of buyers have canceled their running orders. Since the onset of the virus, the apparel stores in the US have dropped by 10% in sales in Feb-march.

Usually, buyers start delivering the goods for the holiday season from Asia early as June. However, due to the health crisis and uncertainty in the situation, the COVID-19 induced economic slowdown could end up hitting holiday sales. The EU textile and apparel industry are expecting more than 50 % drop in sales and production this year.

China gradually coming back in the market

Chinese textiles and apparel manufactures are gradually starting operations after two months of lockdown. China has started exporting medical protective gear including surgical masks and other personal protecting equipment to other countries.

Generally, the fashion brands sourcing from china for the autumn season place their orders during April with delivery in May or June. Due to the lock down period ahead and uncertainty situation, buyers are hesitating to place new orders and canceling the existing orders.

Delayed in making sourcing decisions

A lot of fashion shows, trade fairs, textile expo, and exhibitions have been either canceled or postponed in the past two months, which may lead to delays in making sourcing decisions. The delivery of fashion brands of the upcoming spring season and Autumn-winter has been already delayed due to disruption and travel restriction.

Raw material prices fall down

According to the Cotton Textiles Export Promotion Council (Texprocil), eleven countries buy 41 percent of Indiaís cotton yarn exports and these countries have reported COVID-19 cases.

Many garment and textile factories in China have suspended operations, adversely affecting exports of fabric, yarn, and other raw materials from India. The disruption leads to a decline in the prices of cotton yarn by three to four per cent in the domestic market.

India is the second-largest exporter of polyester after china. With the reduced demand and falling of oil prices, there has been an effect on polyester prices as well. The prices of polyester have reduced by more than 20% due to reduced demand and resulted in significant losses for the fiber players. Gujarat is the largest polyester exporter in India and now is worst affected by this pandemic.

Dyes and chemical prices increases

On average, over 470 textile units in Tirupur require 500 tonnes of synthetic dyes every month and China supplies the raw materials to them. During the past two months, the prices of dyes and chemicals have gone up by about 30 per cent because the imports of synthetic dyes from China are not options, thus affecting production rates.

Now the traders started looking for alternatives as natural dyes. However, it is not possible to procure them in large quantities, considering their limited sources.

Issues in imports of trims

India imports over USD 140 million worth of accessories like buttons, zippers, hangers, Velcro, and needles from China annually. India does not have the domestic supply base to provide such a huge demand for these raw materials.

The Livelihood of Apparel workers affected

The India Textile sectors are second employment generators after agriculture in the country, predominately employs 105 million peoples, the majority of them are migrants from Bihar, Uttar Pradesh, Orissa, and other states. At present, the daily wage workers are on roads or returned to their native places.

According to Clothing Manufacturers Association of India (CMAI), there could be as many as one crore job cuts in the textile sectors if there is no support and revival package from the government. CMAI surveyed among its members and analyzed around 1,500 responses. Almost 20 percent of them were thinking of closing down the business after lockdown if they didnít receive any financial assistance from the government.

Lessons learned by industrialistsí from this pandemic

Shift toward localization and automation

From these lockdown periods, there is another lesson to learn for all industrialists, i.e. not to depend on a single source for raw material supplies and shift towards localization. In manufacturing sectors, it is not possible for workers to work from home. During this turbulent time, industrialist should replace the workforce with automation.

Focus more on E-Commerce Sales and Digitalization of Supply Chain

In order to maintain social distancing, the malls and retail stores were close but some of the e-commerce channels of these stores had start operating in some of the areas. During the initial phase of coronavirus, the consumers prefer online purchase rather than visiting physical stores.

In the past few days, the Honíble Prime Minister has announced 20 lakh crore COVID relief package. The package will provide to various sectors such as cottage industry, MSMEs, and industries, so there is still hope for this industry.


* Oinam Roselyn Devi wrote this article for e-pao.net
The writer is a Research Scholar in the Deptt of Apparel and Textile Science, PAU, Ludhiana
The writer can be contacted at oinam(DOT)roselyn(AT)gmail(DOT)com
This article was posted on May 18, 2020.


* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • 13 August @BT Park #1 : Gallery
  • COVID-19 Status 14 August: Govt of Manipur
  • Anglo-Manipur War of 1891 - a Reflection
  • COVID-19 : Impact in Manipur :: News Timeline
  • NE Start-up Summit (NERES 1.0)
  • Role of teacher in shaping child's personality
  • Reorientation (Skills and Minds)
  • Southeast Asia: Strategic region :: Webinar
  • Plight of healthcare workers
  • Emergence of the Covid contractors
  • Naga Peace Process :: News Timeline
  • Patriots' Day @ Kangla #1 : Gallery
  • COVID-19 Status 13 August: Govt of Manipur
  • The Destiny :: Book released at Kohima
  • Onus on Modi to deliver: Naga Separatism..
  • Maternal Health Rights during COVID
  • Next possible language riots in Assam
  • Hour Before The Rain :: Poem
  • The novelty of the term new
  • Gagging the academia freedom of expression
  • Tete-a-Tete with Maharaj Leisemba
  • COVID-19 Status 12 August: Govt of Manipur
  • Historical War fought by Manipur : 13 August
  • Gwangju Prize for Human Rights 2021
  • Reservation within reservation for NE STs
  • Cloud computing as career choice
  • Community transmission? How will respond?
  • Pardon us your Excellency
  • Thangjing waterfall, Henglep, CCpur : Gallery
  • Eyek Tamba :: Learn Manipuri script
  • COVID-19 Status 11 August: Govt of Manipur
  • Bamboo: The Magic Grass :: Oinam Naobi
  • MSMEs must to rejuvenate economy
  • Consumer Protection Act 2019
  • Congress scripting its own demise
  • Addressing the Zeliangrong question
  • COVID-19 Status 10 August: Govt of Manipur
  • Ramkashing, Sinneihoi, Aton: eMing
  • Women plug food supply gap during lockdown
  • NGO Studies (MAINS) program in South Korea
  • Initiate inquiry for Hospital refusal
  • Love in the Hard Times :: Poem
  • From cluster to local transmission
  • Negative remarks on positive activities
  • MK PB Singh, 1st CM & Mizo agitation
  • COVID-19 Status 9 August: Govt of Manipur
  • Azolla: An organic farmer's friend
  • Corona Came Calling... :: Poem
  • Manipur gi sakkhangbidraba yelhoumee
  • Thousand questions to life but.. one answer
  • Time to take all into confidence
  • Yaoshang Thabal Chongba #2 : Gallery
  • COVID-19 Status 8 August: Govt of Manipur
  • Impact of Covid-19 on mobile phone users
  • International Day of Indigenous Peoples
  • A call against systematic inequalities
  • August Diary :: Poem
  • A tale of Friendships Unlocked !
  • A Nuclear Free Future
  • Stay positive on Northeast plan
  • Is MSPDCL taking advantage of COVID-19
  • Folk Dance @Republic Day #2 : Gallery
  • COVID-19 Status 7 August: Govt of Manipur
  • Written obituary :: Poem
  • Truth unearth by COVID-19 pandemic
  • Clarification from SKY Hospital
  • COVID-19: Orders - 7 Aug: Govt of Manipur
  • Children's psychology & lockdown intervention
  • No confidence & godfather
  • Death in childbirth in the 21st century !
  • Need for a suitable pandemic model
  • Phuba Khuman in Senapati dist #1 : Gallery
  • COVID-19 Status 6 August: Govt of Manipur
  • Thoubalphobia- Malemnganbi's Child Delivery
  • Why not establish veterinary college, Manipur
  • India-Myanmar Convergence :: Webinar
  • National Education Policy : A New Horizon
  • Wanted : Total figure of local transmission
  • Lets appreciates the thousands heroes
  • Become an Amateur Astronomer
  • COVID-19 Status 5 August: Govt of Manipur
  • BIG 17th call : Biotech Ignition Grant
  • Maya Kuki- 3 titles at IAWA India 2020
  • 2020 :: Poem
  • What is Intellectual Property Right (IPR)?
  • Art of running a coalition Govt
  • Traditional Raas Dance #3 : Gallery
  • COVID-19 Status 4 August: Govt of Manipur
  • 2 from Manipur clear Civil Services Exam
  • Education Policy: Prospects & Way Forward
  • Appeal to stop Chromite mining
  • Agri-enterprises for Atmanirbhar North-East
  • Changes to make-up during COVID-19
  • Time to act sensibly
  • Barricading or brainstorming?
  • Tarao Laimanai, Chandel #2 : Gallery
  • COVID-19 Status 3 August: Govt of Manipur
  • Ravi's take on China factor in NE Insurgency
  • Opportunities in post COVID days
  • Shifting of drug supply trend in Manipur
  • Hope in COVID Era !! :: Poem
  • Press Communique from NPF [3 Aug]
  • Stand on ST demand
  • Culturals @ Sangai Fest 2019 #3 : Gallery
  • COVID-19 Status 2 August: Govt of Manipur
  • Misinterpretation of Naga Political Settlement
  • Home returnees, unemployment & ILPS
  • NEP to adversely affect future of North-east
  • Conflicts of laws on Child Marriage & POSCO
  • His Stoic Endurance :: Poem
  • 'Declare relatives working in Naga movement'
  • Rise from July 1 to August 1
  • 'Zehara' - Manipuri Movie :: eRang Classic
  • COVID-19 Status 1 August: Govt of Manipur
  • CCC @ Khongnangkhong [Aug 1]: Gallery
  • Where are the men in family planning ?
  • Asymptomatic & Rapid Antigen Testing
  • Cosmic Lover :: Poem
  • Incremental benefit of cleaning Nambul River
  • Why only 5 Kg of rice to cardholders?
  • Imphal View from Nongmai Ching #1 : Gallery
  • COVID-19 Status 31 July : Govt of Manipur
  • Id-Ul-Azha celebrated by Meitei Pangal
  • COVID-19 & its detection strategy
  • Physical Education & Sports @ MU
  • Naming the COVID vaccine
  • Withdraw MoUs signed for mining
  • More deaths, more concern
  • Ailing Nambul River recovering
  • Dr TS Gangte: Pioneer of higher education
  • COVID-19 Status 30 July : Govt of Manipur
  • August Calendar for Year 2020 : Tools
  • Hand sanitizer @Kakching [Jul 29]: Gallery
  • The Killing Fields 2013-20 : News Timeline
  • Orders / Memo on 30 July : Govt of Manipur
  • National Education Policy 2020
  • A Golden Jubilee Reunion :: Poem
  • Employment options in Insurance Industry
  • The Political life of the State
  • Recording death tally at four
  • Hentak :: An indigenous Manipuri food
  • COVID-19 Status 29 July : Govt of Manipur
  • Enforcement of COVID-19 Guidelines
  • My Love :: Poem
  • LPG management and supply
  • International Faculty Development Program
  • High-end Forensic Geology in crime scenes
  • Covid-19: Impact in Manipur :: Photos/News..
  • Manipur on the map of COVID death
  • Checking corruption: greatest joke of the year
  • Imphal during lockdown [26 July] #2 : Gallery
  • COVID-19 Status 28 July : Govt of Manipur
  • Plantation is no less a serious business
  • COVID-19 : Impact on mobility of women
  • Appeal to stop Mining in Ukhrul, Kamjong..
  • Making sense of lockdown
  • Non-Discrimination in combating COVID-19
  • Zeiladjang @ Makuai, Tamenglong : Gallery
  • COVID-19 Status 27 July : Govt of Manipur
  • Chassad & the Question of Justice
  • Online Training program for Police Officer
  • Proposal of Online Education: Its impact
  • The walls of Roman Londinium
  • Reminiscence of coming :: Book Review
  • Seeking to set house in order
  • The dawn of a new-normalcy
  • Imphal during lockdown [26 July] #1 : Gallery
  • COVID-19 Status 26 July : Govt of Manipur
  • Delimitation amasung yelhoumee Meetei..
  • Investigative Journalism training conducted
  • Gas Balloons :: Poem
  • Career in insurance: Jobs for millions
  • Meet model teacher helping students
  • Understanding total figure of 2212
  • Manipur Art Fest 2019 #1 : Gallery
  • COVID-19 Status 25 July : Govt of Manipur
  • PM calls for Vocal for Local to Manipur
  • Makhol_ Discussing Arts E2 with Astad Deboo
  • Society :: Poem
  • IQs & EQs of politicians
  • Living with COVID 19
  • 'Blood donors should be welcome'
  • Bracing for the worst
  • Princess & Political Agent launch #2 : Gallery
  • COVID-19 Status 24 July : Govt of Manipur
  • Virus Fabrics Spray by Kakchingtambam Kiran
  • Tales from a conflict zone :: Poem
  • Why Manipur senior IPS officer shot himself
  • Anti Defection Law: Big Debate
  • COVID-19 vaccine : So near and yet so far
  • Central observers here after trip to Delhi
  • The limitation on Free Speech
  • Impact of COVID-19 on transgender
  • COVID-19 Status 23 July : Govt of Manipur
  • Love Story of Tonu Laijing Lembi
  • 29th NAMA Virtual Convention 2020
  • Understanding disasters & disaster mgmt #2
  • Seeking NHRC to intervent in Akhil Gogoi case
  • Impacts of COVID-19 on agriculture : Paper
  • Lockdown & opening doors to outsiders
  • In search of the elusive leader
  • Anti-Repression Day #2 : Gallery
  • COVID-19 Status 22 July : Govt of Manipur
  • Race Apart ? :: Poem
  • Of political instability, COVID & war on drug
  • Preventing skin damage due to face masks
  • Issues raised by NPF Legislature Wing
  • Webninar : How to develop skills in writings
  • Nonsensical rush for fuel
  • When the virus starts attacking
  • Manipur & the Lushai Expedition, 1871-72 #3
  • COVID-19 Status 21 July : Govt of Manipur
  • Negatives turning positive, catastrophe in wait?
  • Environmental change : Uttarakhand : Rvw
  • Empathy Campaign at Imphal Airport
  • Rejoinder by Dr. Liezietsu [21 Jul]
  • Responsible conduct- Jiribam to Thoubal
  • BJP may be in trouble..
  • The Princess & Political Agent launch : Gallery
  • COVID-19 Status 20 July : Govt of Manipur
  • Governor & Maharani launch Binodini's Book
  • Mount Koubru: Its dying glory, & way forward
  • Govt expenditures on education in Manipur
  • 2nd Online Career counseling in IT
  • The last of the oaks :: Poem
  • Rising cases of infection
  • Manipur today is living on mercy of Delhi
  • HSE Toppers - Commerce stream : Gallery
  • COVID-19 Status 19 July : Govt of Manipur
  • Featured Front Page Photo 2020 #3: Gallery
  • Loktak Lake: A gem perishing front of our eye
  • HSE Toppers - Science stream : Gallery
  • Salam Sangita : NE Women Success Stories
  • HSE Toppers - Arts stream : Gallery
  • Class XII Result : Highest Marks
  • Class XII Result : Science Toppers
  • Class XII Result : Arts Toppers
  • Class XII Result : Commerce Toppers
  • Class XII Result : District PC
  • Class XII Result : Science
  • Class XII Result : Arts
  • Class XII Result : Commerce
  • Heritage Park @ Sangai Festival : Gallery
  • 9th Manipuri Film Awards (MANIFA) Result
  • Manipur & the Lushai Expedition, 1871-72 #2
  • Barak waterfall @ Tamenglong #2 : Gallery
  • Kanglen Aarti katpa #2 : Gallery
  • Eikhoigi Puwarini Nambul Turel #2 : Gallery
  • Manipur & the Lushai Expedition, 1871-72 #1
  • Takhelchangbam Kunjabihari : Wari Liba
  • I Rise :: Film Scenes : eRang
  • Motsillaba Mingsel :: eRang Photos
  • SPONSORED ADS