Rs 4000 crore garment export orders cancelled in 3 months
Rs 4000 crore garment export orders cancelled in 3 months
Published Date: 17-04-2020 | 11:58 am
SATISH HANDA
Garment export orders of value worth Rs 4000 crore have been cancelled in past three months due to corona spread across the world. Nearly 1600 garment manufacturers, exporters in Haryana state which include nearly 1200 at Gurugram and nearly 400 at Faridabad have been worst affected due to cancellation of large number of orders received from United States and Europe although they had made huge investment over purchase of cloth, accessories and labour of finished as well as semi finished stocks most of them lying ready for despatch. According to Aninesh Saxena President Udyog Vihar Industrial Area Association, Gurugram, most of the buyers in other countries including USA, Italy, France, Germany, Span and U.K facing severe epidemic outbreak has either cancelled their orders or stopped supplies till situation improves as such most of MSME units are on the verge of closure.
According to entrepreneurs involved in manufacture and export of garments, corona has left trade and industry in the world at total collapse due to economic crisis. They said, apart from cancellation of orders, investment blocked in finished as well as semi-finished stocks dumped in their godowns due to lock down declared in the country compelled them to close down their shutters has made things worst due to burden of establishment expenses, expressing that it is difficult for small establishments to pay salaries to staff for the period lock down was declared whereas employees trade unions are constantly demanding to pay salaries to employees during this period.
Saxena said, garment manufacturers as well as exporters had a meeting with MSME minister Nitin Gadkari a couple of days ago to discuss their grievances but no decision could be taken to solve the problem. He said, entrepreneurs has demanded that salaries to employees should be made from ESI or Provident Fund deposit amount since most of small units have not been able to get money from their Mother units and are not in position to pay salaries to staff during lock down period.. .
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