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Covid-19 creates a massive $2 billion gap in India’s apparel industry

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Around sixty-five per cent of the $2 billion (about Rs 15,300 crore) payment from exporters is currently being collected by international buyers as buyers from overseas and buy houses cancel or delay export orders. Sakthivel Chairman of the Apparel Export Promotion Council (AEPC), says that international buyers can postpone orders and seek major discounts on lock-outs across markets. Goods are not traveling in transit goods either. Furthermore, no customers are found in the numerous international ports for the goods dispatched.

K L Magu, MD, Jyoti Apparels adds depleted bank deposits of the majority of exporters today. Global businesses have also not paid a major blow to cash flow for the two to three months old shipment. Different manufacturers have confirmed that foreign purchasers have already entered their ports without lifting deliveries. Sakthivel says that these cancellations and delays in shipments contribute to the depletion of packaging credits. Apparel goods are customized, style specific and trendy, are endangered and will be obsolete in the coming year if cancelled at this stage with a little to no salvage value.

In addition, Rajendra Agarwal, CEO Donear Industries reported that deliveries from brands such as Blackberry, Madura Garments, ITC, in India have been postponed.