Problems in Mauritian textile sector

The textile industry, which is considered one of the main pillars of the Mauritian economy, has been facing serious problems since the month of January. The strong rupee, recession in Europe and the rise in the price of cotton is forcing local enterprises to revise their strategies so as to safeguard the industry.

Ahmed Parkar, director of Star Knitwear group indicated that fall in receipts from countries such as United Kingdom and United States of America has been noted. These countries are the main export markets for the island. Parker said, “It is difficult to manage the situation. Our suppliers cannot reduce prices as a result of the increase in cost of cotton worldwide. This is adversely affecting our business.”

Speaking on the third country fabric, Parkar said that it has helped the country to enter markets where fabrics are imported. He spoke on the present situation of the textile industry on the island and said that an improvement in orders has been noted and that the price is stable. He added that they have been
facing pressure since clients are not willing to pay high prices. Therefore, enterprises must ensure that customers are satisfied with prices.

He also spoke on the problem of strong rupee, which is a cause of worry for local producers. Also, other countries are becoming more competitive than Mauritius. This will have an impact on other sectors of the economy.

On the other side, the director of a textile company based in Port Louis conceded that the situation is becoming increasingly difficult. On the condition of anonymity, he said that the main problem is the exchange rate as a result of the strong rupee on the international market.