India : Low priced used clothing imports threaten domestic industry

A global used hand clothing industry is spreading its wings in India. Aka second hand clothing industry runs up to $1billion in business worth.

Indian textile industry will face an estimated loss of over Rs10,000 crore per annum due to imported used garments that are sold at a pittance; Rs10-Rs15 per piece.

The government allowed import of second hand clothes following the Gujarat earthquake, but now due to unabated in flow of cheap products is having an adverse effect on the domestic industry.

Premal Udani, Chairman of Clothing Manufacturers Association of India (CMAI) says that India is capable of meeting the demand for clothes. Yet, he adds that it will be extremely difficult for domestic companies, unbranded small companies to compete with second hand imports.

Such imports affect the future of about 72 lakh workers directly and also those employed in related industries like manufacturers of buttons, zips, packing materials, sewing thread, colours and dyes.

Used textiles are imported through Kandla port in Western coast and Kolkata port on the Eastern coast. Over 200 tons, comprising 11 lakh pieces of worn clothes, leave Kandla SEZ every day for distribution in various cities.

These are clothes brought in from countries like Singapore, Hong Kong, Malaysia, Taiwan, South Korea, Japan and China as well as UK and Europe. Shirts, trousers, sweaters and pullovers come from countries like USA, Japan, UK and other European countries, while blankets, carpets, rugs, shoes, overcoats, jackets and stuffed toys are imported from South Korea, Japan and China.

Fibre2fashion.com