Home / Knowledge / News / Textiles / COVID-19 puts break on India's raw material import

COVID-19 puts break on India's raw material import

25
Feb '20
Pic: Shutterstock
Pic: Shutterstock
Novel coronavirus (n-CoV or COVID-19) epidemic has taken more than 2,500 lives till now, and if the severity continues further the damage will be beyond repair as China is a major trading partner of several countries including India. China is a major importer of cotton yarn and exporter of purified terephthalic acid (PTA) and polyester staple fibre (PSF).

Trade between the India and China (including Hong Kong) was $115 billion in calendar year 2019, as per the latest Crisil report 'The n-CoV fallout'.

China is the 4th largest trading partner with India for PTA and the largest trading partner for PSF. India imports close to 72,000 tons of PTA and 43,000 tons of PSF from China (data as of 2018 from TexPro). Central China, the hub of feedstock manufacturing, is locked down at a time when the Indian government has abolished 2.5 per cent anti-dumping duty on PTA. The virtual closure due to n-CoV has put break on PTA import from China.

Another sector that will feel the impact is textile cotton yarn. India exports 27 per cent of total cotton yarn to China and the decrease in exports will put a pressure on the domestic cotton yarn prices, in turn creating lower margins for the producers.

The readymade garments sector, however, would not be affected much as China accounts for only 1 per cent of India's overall exports.

Due to rising operating costs, the sourcing of apparel by the US and EU had already shifted from China to other low-cost economies. "N-CoV will further impact China’s exports, thereby giving more opportunities to low-cost economies like India, Vietnam, and Bangladesh. There is an improvement in apparel orders from US and EU to India, and is likely to get incremental $2-3 billion of orders for fiscal 2021. Although, the operating rates of many Indian RMG players are high at ~90 per cent, the labour-intensive sector should be able to add temporary manpower to take up these additional orders," the Crisil report said.

Fibre2Fashion News Desk (WE-DD)


Must ReadView All

Pic: Shutterstock

Textiles | On 28th Mar 2020

Worldwide lockdowns, stimulus shots, raised PPE production

The global response this week to the unfolding COVID-19 crisis saw...

Pic: Shutterstock

Apparel/Garments | On 28th Mar 2020

Vietnam may outdo Bangladesh as 2nd largest RMG exporter

Though Bangladesh is now the second-largest garment exporter...

Pic: Shutterstock

Textiles | On 28th Mar 2020

Morgan Stanley rules out economic depression

With COVID-19 badly damaging the global economy, Morgan Stanley...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


March 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search