: Domestic garmentsâ€™ sales decline by 84% in May: Survey #FinanceIndia #StockMarketNEWS Domestic garmentsâ€™ sales decline by 84% in May: Survey New Delhi, Jun 5 (KNN) Domestic Garment Industry has

@StockMarketNEWS Sun 07 Jun, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Domestic garmentsâ€™ sales decline by 84% in May: Survey #FinanceIndia #StockMarketNEWS
Domestic garmentsâ€™ sales decline by 84% in May: Survey New Delhi, Jun 5 (KNN) Domestic Garment Industry has witnessed a stunning decline in sales during the month of May as compared to the corresponding period of May 2019, said the Clothing Manufacturers Association of India (CMAI) survey.

A survey conducted by CMAI amongst its members revealed that a sale in the garment industry saw a drop of 84% over last year –and that too, primarily because some factories had started manufacturing Masks and other PPE products.

The Domestic Apparel Business has reported almost “zero” production of regular products in May 2020, the survey said.

The CMAI in its survey also stated that despite the easing of restrictions and attempts to open up the economy only 22% of factories have started functioning by the end of May.

Factories are operating at an average 25% of their capacity while 40% of the factories that have started functioning, are engaged in the manufacture of current essential products like Masks and PPE products, CMAI said.

CMAI’s survey also revealed that as of May 15th, of those who had applied for the additional Working Capital Loan (COVID Line) as directed by RBI, only 26% had actually received assistance from their Bankers.

The balance 74% still had their applications in the ‘processing’ stage, it said.

The clothing body further said that the findings clearly indicate that the Garment Industry is going through an unprecedented crisis, and unless immediate steps are undertaken to permit unfettered and uniform opening up of all Shops, Market Complexes, and Malls (maintaining Social Distancing and Health Check norms), as well as factories, and the Banks step in to assist the Industry, the Garment Industry in India is heading towards an unmitigated Disaster.

Millions of Jobs are at stake. Timely intervention by the Government and Reserve Bank of India can save these jobs and help industry to survive, CMAI suggested.