Siren bells for apparel exporters; major brands from Europe begin cancellations
New Delhi, Mar 18 (KNN) The news of cancellation of orders by European buyers has spread panic among apparel exporter community in India.
EU consumes almost half of India’s textile and garment exports valuing USD 40.4 billion in 2018-19 half of which is estimated to comprise of Ready Made Garment (RMG) sector.
"With complete lockdown announced in Italy and mass closure of malls and departmental stores across EU, major brands such as H&M, Zara and Mango have started cancelling existing orders or have issued instructions to hold shipments till further orders," says Dr. Animesh Saxena who heads Neetee Apparels LLP and is also President of Federation of Indian Micro and Small & Medium Enterprises (FISME).
The apparel industry is bracing itself for an existential crisis as large number of garment exporters based in National Capital Region are forced to observe partial shutdown from next week.
"Besides the financial difficulties that such a situation create for producers, if the uncertainty prevails even for few weeks, the migratory labour force might see mass exodus from NCR resulting in medium and long term disruption in supply chains and massive loss of employment," Dr. Saxena added.
FISME is consulting its constituent MSME associations to develop a sector wide protocol following Corona virus pandemic and is to seek specific government intervention to help MSMEs tide over the crisis.
Exporters are of opinion that RMG sector being a highly labour intensive, Government should announce a package to save employment during this period of disruption. (KNN Bureau)