The Apparel Export Promotion Council (AEPC) has advised its members to diversify the sources of raw materials for apparel manufacturing as the supply from China has been disrupted in the wake of the coronavirus pandemic.
In a letter written to the members of the council, AEPC Chairman A. Sakthivel said that the industry body has approached the government on the matter.
“AEPC advises its members to diversify their sourcing base given that the supply chain from China is disrupted. We have approached the government who in turn has asked the Indian embassies abroad to identify alternate sources of input suppliers,” he said.
The statement comes weeks after the apparel industry body charted out the key products in which India can become a major exporter and fill up the gap created due to disruption in China.
Chairman Sakthivel’s latest letter also mentioned that the council has identified top 10 apparel product lines each in the US, the European Union, Japan and South Korea which are showing significant decline in Chinese exports and which Indian manufacturers can tap.
“These can work as new opportunities for local apparel exporters who have the potential to fill the gap,” it said.
Separately, in a presentation on handling the situation created out of the coronavirus crisis, the council on Sunday said that India largely imports raw materials from China and other major supplying countries have very limited exports to India.
“There is an urgent need of exploring other options,” AEPC said in a presentation.
Indian garment manufacturers buy majority of yarn from China, while Indonesia and Japan also are suppliers of the item, although in lower proportion. As per the presentation, both Japan and Indonesia can be the options for India in terms of yarn imports.
Similarly, Egypt and South Korea can be looked at as alternative fabric suppliers by Indian manufacturers, it said.
The council has also charted out a number of potential Japanese suppliers of yarn, machinery and accessories required in garment manufacturing. Further, AEPC is also planning to conduct roadshows to explore new buyers and market after evaluating the feasibility, on the basis of travel advisories.