Declare clothing exports as essential services, exempt exporting units from blockages: AEPC

The Apparel Export Promotion Council (AEPC) on Wednesday urged the government to declare clothing exports as essential services and exempt exporting units from lockdowns across India.

Most clothing exports are seasonally and fashion-sensitive, and their salvage value becomes zero if production and shipping is not done on time, he said.

“We demand that the central government give the necessary instructions to all state governments to declare clothing exports as essential services and exempt them from the shutdown,” PEAC President A Sakthivel said in a statement. Prime Minister Narendra Modi.

He said given the perishable nature of the product, clothing exports should be considered essential services.

Sakthivel said many neighboring and competing countries have already granted garment exports essential service status.

The sector, he said, has shown resilience to get back on track after being hit hard in 2020 by huge export order cancellations, bankruptcies and workers returning to their home countries. ‘origin.

“Export orders from the United States and Europe have resumed, but Indian garment exporters now risk losing them to competing countries as the second wave of the COVID-19 crisis has resulted in blockages in several states, ”he added.

Due to the lockdown, if the units are unable to fulfill these orders, it will not only lead to a short-term loss of orders and export earnings, but also a long-term loss of buyers, the said. President.

“Our competitor countries like Bangladesh, Vietnam, Cambodia and Pakistan are doing everything they can to take orders from these regions and if we lose our buyers at this point they will not come back in the near future,” Sakthivel added. .

Later in a webinar, he asked buying houses and agents to explain to international customers that the situation in India is improving day by day.

He said they should convince their customers not to cancel their orders as he believes India will rebound by mid-June.

Although buyers are not considering massive cancellations, as happened in 2020, some products will not be able to ship, the council said.

The clothing industry employs around 13 million direct workers.

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