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Movement curbs make order execution difficult for Indian firms

According to Garment Exporters & Manufacturers Association (GEMA), curbs in inter-state movement of vehicles and shortage of workers are making it difficult to for many apparel firms to execute their current orders. Even though buyers in US and Europe are asking for discount in prices, the revival in demand is a big respite for garment firms. Peak demand season usually gets over in May but now that shops are finally opening in key markets, supply orders have been extended.

Even as Home Ministry has allowed states to decide on inter-state movement of passenger vehicles, many state governments have taken a cautious approach and are reluctant in permitting free flow of transport. While the move is aimed at containing the spread of coronavirus, restricted public transport and passenger vehicles are impacting movement of workers.

This has forced many factory-owners and garment mills to operate at a limited capacity ranging from 25 per cent to 50 per cent. Return of migrant workers to their home states has created massive shortage of manpower in industrial clusters and zones.