Corona: The impact of the textile sector based on China's raw materials

Mumbai, Ta. 20 February 2020, Thursday

The closure situation in China due to coronavirus will affect India's textile and apparel industry, according to the Clothing Manufacturers Association of India (CMAI). Some of the positives of this condition and some negative effects have also been expressed.

According to a statement issued by the association, the precarious situation currently prevailing in China is becoming a major challenge for India's textile units, which rely on raw materials from China. Global Apple brands will also have to look at alternative manufacturing plants like India. India averages two to two and a half million key annually. Gr. Cotton yarn exports to China. In the domestic market, cotton yarn prices have dropped by 3 to 5 percent, with demand coming down from China.

From China, India imports approximately $ 200 million worth of synthetic yarn and $ 100 million of synthetic fabric annually. In addition, accessories such as buttons, zippers and noodles are also imported. The association has also claimed that India does not have the capacity to meet the huge demand for these raw materials.

Textile factories have been closed in China since the beginning of the new year. If the coronavirus effect is long-lasting, India's manufacturing units will have to consider other options, which are likely to increase the cost of production of textile and apparel.

To reinforce India's synthetic textile industry, 5.5 percent of anti-dumping duty on purified tephthalic acid (PTA) has been abolished, but as imports from China are currently halted, manufacturers will have to rely on domestic supply.