Garment exporters face recession heat

Economic slowdown woos continue to trouble the Indian garment

exporters. With no new orders and a 30 per cent fall in the current ones from regular clients in US, Canada and Europe have forced them to look for newer avenues. And the countries they are now looking at are: Russia, Brazil, Argentine and Japan. Indeed Tirupur and Punjab-based exporters are facing a tough season.

Usually orders for the next season are placed about six months in advance but Indian exporters especially from Tirupur and Punjab region, their clients are mainly based in the US and EU are witnessing fall in the prices and low order count. This also means neighbouring countries are taking advantage of the situation leaving Indian exporters to try and penetrate newer markets. However exporters say it is not easy to venture into new destinations since competition is tough and the demand and requirements differ from region to region. So far, the Rs 12,000-crores Tirupur knitwear industry has been focussed on the European and US markets. And a delay in procuring orders would mean buyers are moving to garment manufacturers in Bangladesh, Pakistan and Taiwan. So exporters are now looking at demand from the Middle East, Japan and Russia. Experts say the US and European markets plan six months in advance ensuring that summer merchandise is on display by January end and February even though it’s still snowing there.

Usually deals are negotiated by September with deliveries being done by December. Similarly for winter collections, orders are taken in by January and deliveries made from April onwards.