India : Cash inflow will revive sales: Textile industry

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Cash inflow will revive sales: Textile industry

06
Dec '16

The textile industry representatives are hopeful of revival of business once the cash flow begins in the market. Textile sales had gone down by around 50-60 per cent after the scrapping of high-denomination Indian currency notes on November 8. This announcement by the Central government had applied brakes on textile sales in the initial period.

“Surat generally gets bulk orders from various parts of the country. Demonetisation has badly affected our business dealings. Consumers are spending as low as possible. Textile sales have gone down by 50-60 per cent. Placing of order has also reduced by around 75 per cent. The situation is such that weaving has decreased by 60 per cent and processing by 30 per cent. Cash inflow is also very slow. However, it is a positive sign for us that few consumers are still purchasing garments via credit/debit and online system,” Southern Gujarat Chamber of Commerce and Industry president BS Agrawal told Fibre2Fashion.

Despite slow business in the textiles, representatives of the sector welcomed the move hoping that it will ensure systematic functioning of the entire value chain related to the industry.

“Initially, the sales had gone down to around 15 per cent. With time, the sales have improved a bit and we hope that it increases with the recovery of cash crunch in the market. However, demonetisation will definitely benefit the textile business in the long run. It is expected that this initiative by the government will restrain all unbilled sales,” said Naishadh Parikh, chairman, Confederation of Indian Textile Industry.

“The situation is not very good. It will take time for the market to move towards cashless economy. Large retailers have not been much affected as consumers are doing purchases with plastic money and via online. However, with the ongoing wedding season, domestic retail shop owners are bearing the brunt of demonetisation,” said Ajay Sahai, director general and CEO of Federation of Indian Export Organisations. (RR)

Fibre2Fashion News Desk – India

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