Some 150 garment manufacturing plants in the Delhi-NCR region have been hit by a Supreme Court order banning the use of petroleum coke and furnace oil. This has come at a time when exports peak due to big demand. Around 80 per cent of exports happen between November and March, as this is the festive season in international markets.

The Delhi-NCR belt is one of the country’s top textile manufacturing hubs. It is home to around 1,000 exporters that supply garments to many international companies, including Inditex (owner of Zara) and Walmart. The ban has been imposed due to environmental reasons. The companies have filed a petition seeking more time to move to alternate fuel systems. One of the options is to use piped natural gas, which is three times more expensive than pet coke and requires a capital investment of Rs 2 to Rs 4 crores per plant.

India’s apparel exports are expected to increase on the back of demand from EU and US markets. Along with Cambodia and Vietnam, the country has emerged as a top sourcing hub for global fashion brands as steep labor costs and compliance issues have plagued sourcing hubs such as China and Bangladesh.