The Indian apparel industry, which was on a path to recovery since the beginning of this year, has being hit once more by the second COVID-19 wave. A survey conducted by the Clothing Manufacturers Association of India (CMAI)’s at the beginning of May ’21 indicates, 55 per cent manufacturers achieved less than 25 per cent of their sales during 2021.
Around 77 per cent of these manufacturers are contemplating reducing staff by over 25 per cent.
Loss of orders, unpaid dues put pressure
Around 72 per cent respondents reported almost 50 per cent reduction in orders, which they believe would lead inventory issues in coming months. And 72 per cent respondents also reported receiving less than 25 per cent of their due payments in April while another 12 per cent received less than 50 per cent of their dues.
Nearly 90 per cent respondents pose a bleak outlook for May with 45 per cent not expecting the market to revive before Diwali. Almost 22 per cent respondents do not expect markets to revive before 2022.
Respondents also expect the pandemic to have a drastic impact on employment in the sector. Almost 77 per cent of those surveyed plan to cut staff by 25 per cent in coming months. Fifty per cent workers from 64 per cent of the surveyed factories have started returning to their villages.
CMAI has urged the Maharashtra and Karnataka government to focus on the domestic garment industry post reopening of the economy.
It urged the government to allow garment factories to operate with 50 per cent capacity with immediate effect with strict adherence to COVID rules. CMAI plans to continue its periodic surveys to understand the ground realities of the industry and communicate the same to the concerned governments.
