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

Already impacted by a lockdown induced shortage of labor, the textile industry is now facing prospects of an increase of as much as 25% in manufacturing costs. This is also because functioning units have to comply with statutory norms on sanitization and social distancing on the shop floor to prevent the spread of coronavirus.

“Even if the lockdown period ends and factories open, we will have to increase compliance on social distancing and sanitization to improve cleanliness across the value chain. This is set to increase our cost of production by at least 25%, which we will pass on to consumers,” said Ujwal Lahoti, Owner, Lahoti Overseas.

Textile units are planning to start production with 50% of their installed capacity post-May 3, 2020, due to huge inventory piled up with distributors and retailers before the lockdown. With uncertainty remaining over the opening up of retail markets simultaneously, textile manufacturers are planning to start their factories in a phased manner.