Garment exporters from Noida and leather goods exporters from Mumbai, Delhi and Kolkata, are facing a shortage of workers due to rising covid cases. In the Noida apparel export cluster, the return of migrant workers has completely stopped with 3,000 garment export units facing a shortage of around 3 lakh tailors.
With orders in hand from the US and Europe, exporters are concerned how to meet their obligations. Similarly, leather goods exporters are flooded with orders from global markets but rising covid cases among workers is creating a shortage in manpower at the units.
“Earlier, we were working at 70 per cent capacity. But now, suddenly, the flow of orders from the US and Europe has increased. The migrant workers were slowly coming in. But the rising covid cases has halted the process and we are in the dark on how to handle the orders. We have taken up the matter with the Uttar Pradesh government as well,” said Lalit Thukral, president of Noida Apparel Export Cluster.
Before covid struck, the Noida export cluster had a total workforce of 10 lakh, of which 50 per cent were migrant workers. Slowly, the migrant workers started coming in and by the time the second wave was over, around 2 lakh migrant workers returned. The units were comfortable with 7 lakh workers. But with sudden surge in demand, they need additional 3 lakh workers – who are majorly tailors and specialised in embroidery work.
“This is an added problem apart from the rising cotton prices which is impacting the exporting units. Cotton prices which were at Rs 37,000 per candy of 335 kg in September 2020 has gone to up to Rs 70,000 in December 2021,” added Thukral. The Noida apparel export cluster annually exports about Rs 30,000 crore of goods.
The exporting units at Noida fear that if they do not deliver the export orders on time due to shortage of manpower and rising cotton prices, then a portion of their business may shift to countries like Bangladesh and Vietnam.
While the garment exporters from Noida are facing the problem of non-availability of migrant workers, the leather exporting units in Kolkata, Mumbai and Delhi are witnessing a decline in workforce due to rising covid cases among them.
“Cases are rising in Mumbai, Delhi and Kolkata where many leather goods exporting units are based.
The workers, who are double vaccinated, are falling prey to this new variant of Covid and therefore the manpower is getting impacted. We have orders in hand. But the rapid fall in manpower supply is becoming a major concern,” said Ramesh Juneja, a leading leather goods exporter and regional chairman of Council of Leather Exports.
The units located in these three metros employ around 7-8 lakh people.
Source:economictimes.com