Noida: Not only covid has a Chinese link.
Recent losses in the clothing industry in Noida also have connections with the country.
During the past seven months, city clothing makers have calculated losses in unexpected production from international prohibitions on Xinjiang cotton.
The US and some other countries have banned the import of cotton from the Xinjiang China region following the report of human rights violations on Uighur Muslims, most of which are used in cotton production.
The report shows that the community has been forced to work in Xinjiang, which accounts for most of the world cotton supply.
As a result of this international boycott, Chinese producers have reduced production in their country and record a large number of cotton yarn from India and other parts of Southeast Asia.
With most Indian cotton now exported to China, yarn prices and threads have been fired for domestic traders.
The clothing manufacturer in the city said that yarn prices have risen 70-80% in India, which leads to increased production costs.
Since neighboring countries such as Bangladesh export garments at cheaper prices, losses have increased increasingly.
“In the past six months, thread exports have increased by around 75% and prices for us have risen by almost 80%.
Therefore, our production costs are increasing.
We are now exporting a dress of around $ 8 (Rs 588), which can be provided by Bangladesh manufacturers for for $ 6.5 (Rs 478).
This price is not feasible for us.
The business shifts to other countries such as Bangladesh and Vietnam, “said Lalit Thukral, President Cluster Clothing Clothing Noida (NAEC).
What has been added to Trader’s misery is the government’s decision to collect 10% additional import duties on cotton.
“Our supplier says cotton threads have been purchased by China with advances for all lots from not only India, but some Southeast Asian countries.
Yarn companies see big profits and shares outside the roof.
But the garment industry suffers.
This problem has been raised with the government At each level, but there is no response, “Neeraj Prakash said, managing a strange export director of Private Limited, who was in business for the past 30 years.
Clothing makers say increased thread exports can also cause work losses because it is not a labor intensive industry.
According to industrial observers, the investment of Rs 100 Crore in cotton production will employ around 300 people, while the same amount in making clothing will provide work to 70,000 people.
“We saw ‘making in India’.
But this trend clearly does not make custom production possible.
We plant cotton in India, but we buy it at higher prices.
Our exports suffer, and fewer people are employed,” said Thukul.
He claimed that in the past three years, the clothing export industry has dropped from $ 18 billion to $ 12.5 billion now.