New Delhi: Apparel exporters body AEPC on Tuesday said coronavirus outbreak is impacting the global supply chain of goods and the government should immediately extend support to the sector to promote shipments.
In a letter to Finance Minister Nirmala Sitharaman, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel
many members of the council are facing serious concerns in terms of working capital, inventory pile up, postponement of orders, credit rating and export realisations.
He requested “immediate intervention to maintain the viability of apparel exporters in the country”.
Recognizing the volatilities in the global apparel markets and order postponements/ cancellations, he said the sector needs full support of financial institutions.
“We believe the current situation in the sector is extremely grave which warrants urgent remedies. In absence of such relief measures, NPAs may increase, impacting the sectors overall credit ratings,” he added.
Sakthivel said that the apparel trade which is deeply integrated with the global value chain has been impacted by the disruption in both imports and exports.
Uncertainties are developing over timely deliveries of imports of raw materials and, on the demand side, communications are being received from buyers on the postponement of shipments, he said.