The Impact Of India'S Outbreak On Cotton, Textile And Garment Industries

According to the latest data released by the Ministry of health of India, as of 8:00 local time on April 25, in the past 24 hours, there were nearly 350000 new confirmed cases of new crown pneumonia in India, with a total of nearly 17 million confirmed cases, 2767 new death cases, and nearly 2.68 million confirmed cases, a record high.

  As the world's second largest population country, India has absolute influence in many industries.

1. Cotton

India is a major cotton producer in the world, accounting for about 24% of the world's cotton production in 2019 / 20. According to the Counselor's report issued by the U.S. Department of agriculture, India's cotton planting area may drop by 2% in 2021 / 22. At present, Indian cotton is in the sowing season, and has been gradually sown in northern India. Normally, it will be fully sown at the end of April.

However, it seems that the domestic epidemic situation in India has led to labor shortage and reduced willingness of cotton farmers, or affected the cotton planting process, resulting in a further decline in cotton planting area.

2. Textile clothing

India is the world's largest cotton producer, the world's largest jute producer, the world's second largest silk producer, and its yarn production capacity accounts for 22% of the world. The textile industry accounts for about 15% of India's total export revenue.

Since the second half of last year, the epidemic situation in India has been gradually warming up. Many large export-oriented textile enterprises can not guarantee normal delivery due to the epidemic. In order to ensure that the supply will not be impacted, European and American retailers have transferred many orders originally produced in India to China for production.

For example, among the orders transferred from India to China, the orders for towels, bed sheets and other products are relatively large. At the end of last year, some manufacturers have indicated that the number of transfer orders received will be arranged to the second quarter of 2021.