Apparel brands from across the world plan to divert orders from Sri Lanka and are seeking discounts from Indian exporters to de-risk supplies from disruptions amid the political and economic crisis in the island nation.
The brands are asking for lower prices as key buyers US and Europe are facing high inflation, NarendraGoenka, Chairman, Apparel Export Promotion Council, says, garment exporters plans to reduce prices by 5 per cent to bag from global brands. Our margins are already and a further reduction in prices will have more impact, he adds.
Supplies from Sri Lanka are cheaper and industry insiders said its exporters have the order book full, but their customers have started shifting orders elsewhere. Lanka exports $5.42 billion worth of garments annually.