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Textile companies pushed into corner by unprecedented imports
21
May '09
Unprecedented import of cheap fabrics and clothing is turning in to a disadvantage for the textile and garment manufacturing units in the African continent. The Ugandan textile sector is suffering the pangs along with the bane of high production costs.

Experts from the sector are urging the government to set up some import controls to save the industry in Uganda or they aver that, the domestic textile industry will be wiped out in the near future, putting thousands of jobs in jeopardy.

They say that the domestic industry is overburdened with high costs of inputs like water, electricity and gas taxes, which are the main raw materials of the sector, and this puts them at a clear disadvantage, vis-à-vis the cheap imports.

Experts point fingers at China, which due to its competitive value chain and high subsidies from its government is able to dump textile products at low prices and thereby is pushing the domestic textile industry into a corner.

They cite statistics by saying that Uganda exported goods worth US $20 million to China, mostly raw materials, while it imported products amounting to $290 million, mostly finished goods from China.

Fibre2fashion News Desk - India

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