Coronavirus has taken everything in its clutches. What started as a mere negligible virus has caused shutdown of countries across the world. Various industries are hit by this and in lieu of the uncertainty revolving around the work resumption, countries are looking for alternate ways and options to trade. One such market which has been hit is the Textile industry and with China on a partial shutdown, many global suppliers are turning to India for textiles and yarn.
China has cancelled most orders. Amidst the disruption in the supply chain from China, various spinning mills and textile units in the region have claimed to have received fresh enquiries from the global suppliers like United States, Europe and Russia as India is one of the alternate markets with whom they can trade with.
In order to meet the global demands, spinning units of the region will pick the pace and gain momentum. It will also help India to safeguard itself from incurring the impending losses likely to be caused due to curtailed export to China which accounts for nearly one-third of India’s yarn exports.
Though enough availability and higher prices of cotton may pose a challenge for spinning mills locally as most of the fresh produce is being procured by state-run agency Cotton Corporation of India since spot prices are ruling below government fixed minimum support prices.
There are about 125 ginning units in the state of which around half of them are in Malwa-Nimar, the leading cotton growing region of MP.
Other than textile, industry players have claimed that they are also getting fresh enquiries for garment from overseas and hope to materialise them.
Some industry players said the cost of manufacturing in India could go up in coming months owing to a halt in supply of accessories from China used by the textile industry.