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Textile units to see 25% spike in production costs due to Covid compliance

Some plan to operate at 50% capacity, due to huge inventory piled up with distributors and retailers before the lockdown

textile, clothes, industry
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Exporters are hoping to get a financial package from the government and interest-free working capital loans to sustain textile shipment from India.

Dilip Kumar Jha Mumbai
Already impacted by a lockdown-induced shortage of labour, the textile industry is now facing prospects of an increase of as much as 25 per cent in manufacturing costs. This is also because functioning units have to comply with statutory norms on sanitisation and social distancing on the shopfloor to prevent spread of coronavirus.

“Even if the lockdown period ends and factories open, we will have to increase compliance on social distancing and sanitisation to improve cleanliness across the value chain. This is set to increase our cost of production by at least 25 per cent, which we will pass on to

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