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 4th Apr 2020

Textile-garment, retail sectors bear enduring pandemic

Extended store closures, many factories halting operations due to...

Pic: Kristi Blokhin / Shutterstock.com

Textiles | On 4th Apr 2020

World Bank Group launches 1st operations for COVID-19

The World Bank’s board of executive directors yesterday approved a...

Pic: Shutterstock

Apparel/Garments | On 4th Apr 2020

Haiti making masks to fight COVID-19 pandemic

To keep its textile industry afloat amid the economic shutdown...

Interviews View All

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Textile Industry, Head honchos

Textile Industry
Head honchos

African fashion has a strong identity

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Herbert Guebeli,

Herbert Guebeli

Switzerland-based Sedo Engineering develops technologies for the denim...

Abhishek Ralli,

Abhishek Ralli

Guide group is a government recognised manufacturing house engaged in the...

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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