Home Facts trade

Textile Sector Loses Colour to Cheap Second-Hand Imports

Textile Sector Loses Colour to Cheap Second-Hand Imports

Write: Vada [2011-05-20]

The government allowed the import of second hand textile under the open general license (OGL) route following the devastating earthquake in Gujarat on January 26, 2001.

These used textiles, imported through Kandla port in the Western coast and Kolkata port on the Eastern coast, arrive from the Far East countries like Singapore, Hong Kong, Malaysia, Taiwan, South Korea, Japan and China as well as UK and Europe. According to industry estimates, over 200 tonne, comprising 11 lakh pieces of worn clothes, leave Kandla SEZ every day for distribution in various cities.

At present, there are over a dozen units at Kandla with sorting, washing and other facilities to give a fresh look to these clothes.

The second-hand 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.

Premal Udani, chairman of Clothing Manufacturers Association of India (CMAI) argues, "India is well-equipped to manufacture and clothe its people. How can the industry, especially the small, local, unbranded garment manufacturers, compete with second-hand clothing imports, which are selling at very low prices?" "We have represented the issue to the government and requested a ban on the import of second-hand readymade garments into the country, but no action has been taken so far," said Mr Udani.

The cheap sale of these imported worn garments potentially affects employment of 72 lakh workers directly employed in the garment industry, about 80% of which are women supporting the family income, and others in ancillary industries such as manufacturers of buttons, zips, buckles, sewing thread, packing materials.