The entire world is affected by Covid-19. Many lives are lost due to this pandemic; also, the world economy is fallen. This economic crisis has also affected many businesses around the world like transport, healthcare, restaurants, lodges, tourism, etc. The textile sector is facing loss due to reduction level in the export. The government measures to fight against the corona virus are putting the material producers in trouble. Along with that fabric, the industry is facing problems to continue with its schedule for manufacturing and struggling to repay the bank loans.
Textile industry includes mills of various sizes as micro, mini and broad-scale units. Micro-scale units with facilities like dyeing, processing, and completion are done by the knitting industry in local areas. The material industry gives employment to numerous individuals working in weaving, dyeing, tailoring, creating, exporting, and crude fiber manufacturing units. The clothing industry has a nearby linkage to agribusiness. Cotton is the crude material on which the garment industries are mostly dependent, about 65% of the total material used by individuals is cotton itself. Furthermore, the pandemic has disturbed the whole chain. Yarn and fibers are manufactures in various places, while the threads are manufactured in industries, graphical designs or appearance are done in mechanical weaving looms.
International Trade during Covid-19 wave
The corona virus has adversely affected International trade and local markets. International trade markets are affected by the cancellation of orders. Added to it, local consumption is also affected due to the closure of shops. New shop openings have ended in the cities named for fashion and new movie production is also stopped the recent days, which further reduced the sales. Also, no one will buy a winter season collection in the summer season because of which the product sales are difficult once the fashion of the dress goes away.
Due to covid-19, many of the fabric units laid off, which adversely affects the export of textile materials. Because of this disorder, the cotton yarn export will decline by fifty percent, which will hurt mills that are involved in spinning. The handloom section and the craftsmanship segment experienced the hardest hit.
Since the textile and clothing sector is mainly based on labor and capital investment, there is the destruction of workflow. Buyers from all over the world are asked to stop the shipments until the situation returns to usual. Added to this, the cost of dyes and chemicals which is used in the textile industry has raised by 30%, impacting production.
Famous fashion brands are also affected due to the crisis. Some brands have reached such a point where they have to close down their factories. As fashion is straightly related to the textile industry, diminish in fashion will result in a decline in the textile industry.
If the impact continues and there is no growth in the trade due to complete or partial lockdown, the consumers will also not buy the products since they are losing their jobs. Moreover, salary cut is not letting the people shop freely. Since People are worried about social distancing, they are not willing to visit the shops or malls. They don’t want to roam and buy products; they worry more about health than fashion. With the shops and boutiques being shut there have been no deals. There is no income and there is a major liquidity crunch.