Apparel March 2020 Apparel March 2020 issue | Page 58

INDUSTRY INSIGHTS
Impact of Coronavirus on
Apparel and Textile Industry
CMAI attempts to analyse the Impact of Coronavirus on the Apparel and Textile Industry in
India, the uncertainty of Future Production in China and the dearth in Supply of Raw Materials
that the Indian Manufacturers may face...
China’s Coronavirus shutdown will also affect
the Indian Apparel and Textile Industry, with
both pros and cons. The prevailing situation in
China along with the uncertainty of production
commencing, is posing a major issue for Indian
manufacturers who are dependent on supply
of raw materials from China. Meanwhile, global
apparel brands will have to look at alternate
manufacturing destinations such as India.
The deadly Coronavirus which has been declared
as a global health emergency has taken several
lives in China and is simultaneously affecting the
Global Manufacturing Industry. The outbreak has
equally affected the Apparel and Textile Industry,
where China plays a core role in the global
supply chain.
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I APPAREL I
March 2020
1. INDIA’S YARN EXPORTS TO CHINA
CURTAILED
On an average, India exports 20-25 million kg
of cotton yarn a month to China. Cotton yarn
prices have fallen by three to four per cent in the
domestic market as traders anticipate a curtailed
demand from China due to the prevailing situation
there. Further prolonging of the Coronavirus will
result in the decline in China’s imports of cotton
yarn and hence, impact the cotton yarn export
business in India. This will divert India’s surplus
cotton yarn to the domestic market, further
reducing the price of cotton yarn.