The currency crisis in Egypt has hit the Indian textile industry. Roughly a 100 containers have been returned since Egyptian importers are unable to make payments. Containers of cotton yarn and fabrics from Gujarat and South India are coming back. Some exporters have stock at discounted rates and on credit.

In addition to the shortage of dollars, a reduction in yarn and fabric prices is also a reason for the situation.Egypt is passing through a tough currency crisis and has decided to allow only exporters to trade in dollars and importers are not given dollars for payments.

Many exporters work with dependable purchasers, and instead of returning the containers, they choose to sell the cargo with a protracted credit period.Further the situation these days is companies are able to find a buyer for a product at 30 per cent discounted price, and they have a stock of about 15 containers of products specially made in the Egyptian market, but now the buyers are demanding a 50 per cent discount. Basically, the business has been harmed by large price swings, and sluggish demand in Europe has resulted in low dollar income for many economies that are dominated by the textile industry.