High freight charges and yarn prices dampen prospects for Indian apparel exporters

Though apparel exporters in India are witnessing a surge in orders, high freight and yarn prices are acting as a dampener in the competitive export environment.

As per Tribune India, exporters in US and Europe don’t want to be dependent on China fully for exports and aim to divert some of their sourcing to other countries.

Initially, during the second wave of COVID in India, international players had moved 10-15 per cent of orders to countries such as Vietnam, Sri Lanka and Bangladesh. Concerned over the situation, the exporters had a dialogue with their clients and they were able to win their confidence and orders have started picking up, says Lalit Thukral, President, Noida Apparel Exporters Cluster.

However, though exporters are witnessing a surge in orders, high yarn price is acting as a stumbling block. The prices have risen by 50 per cent in the past few months, informs Harish Dua, President, Knitwear and Apparel Exporters Organization

With the surge in orders, major apparel hubs such as Ludhiana, Jalandhar, Panipat, Gurugram and Noida are likely to be benefitted. Europe and the US are India’s biggest markets for garment exports.

According to the exporters, since December 2019, freight charges have gone up by almost 300 per cent on major routes.