About 65 per cent of apparel exporters’ payment amounting to around $2 billion (about Rs 15,300 crore) is currently stuck with foreign buyers since overseas buyers and buying houses are now either cancelling or postponing confirmed export orders. As Apparel Export Promotion Council (AEPC) chairman Sakthivel says, with lockdowns across markets, foreign buyers are postponing orders, and asking for hefty discounts. Goods in transit goods are also not moving. Besides, the goods dispatched are also not finding any takers on different foreign ports.”

K L Magu, MD, Jyoti Apparels adds most exporters’ bank deposits today stand exhausted. Foreign buying houses have also not paid for the two to three month-old shipment, leading a huge blow to cash flow. Various manufacturers have disclosed that foreign buyers are not lifting deliveries which have already reached their ports. Sakthivel says, such cancellations and postponement of shipments are resulting in packing credits being eroded. Apparel products are tailor made, design-specific and fashion-specific and are perishable and any cancellation at this stage would make them redundant with little or no salvage value the next year.

Rajendra Agarwal, Managing Director, Donear Industries also confirmed that there has been postponement of deliveries from brands like Blackberry, Madura Garments, ITC, within India.