Domestic apparel sales drop 84 percent in May, says CMAI
India’s domestic apparel makers are the worst hit with the Covid-19 pandemic, having witnessed an 84 percent drop in sales during May, as against the corresponding period of May 2019, said the Clothing Manufacturers Association of India (CMAI).
CMAI surveyed its members to analyse the current situation in the industry. The survey also noted that apparel production in the country was zero in May.
CMAI expects more than a 40 percent drop in demand after the lockdown ends, resulting in losses of around Rs 1 lakh crore ($13.54 billion). It has also sought government support for opening up of stores and factories.
“Contrary to what is thought, the situation has hardly improved even after easing of restrictions and attempts to open up the economy. Factories are operating at an average 25% of their capacity. 40% of the factories that have started functioning, are engaged in the manufacture of current essential products like masks and PPE products,” CMAI said in a statement.
“The garment Industry is going through an unprecedented crisis, and unless immediate steps are undertaken to permit uniform opening up of all shops, market complexes, and malls (maintaining social distancing and health check norms), as well as factories, and the banks step in to assist, the garment Industry in India is heading towards an unmitigated disaster,” added CMAI.
CMAI represents some of India’s biggest apparel firms like Aditya Birla Fashion and Lifestyle, Arvind Fashions, Future Group, Shoppers Stop and Raymond, among many others.
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