Economics Of Used & Mutilated Clothes (Fabrics)

In India, the tradition of passing on clothes from one person to others, and is among very few countries where on auspicious occasions incomplete without donating clothes and other articles of value to the deprived persons.

Many countries in Europe were in the grip of an economic slowdown, following which the second-hand clothing business has increased in volume.

Second-hand clothing is more of a necessity than a choice for some countries. But, in other parts of the world like Philippines, and  Indonesia import of second-hand clothing from other countries is prohibited. 

The rationale behind the ban is that second-hand clothing imports can hamper growth of local textile industries.

For decades, second-hand garments from the West have created a thriving business in India, as cheap clothing.

The fashionable fabrics routinely resurface in urban flea markets such as Sarojini Nagar in New Delhi and Linking Road in Mumbai, where students purchase at cheap rates.

The booming demand has seen increase imports despite government moves to restrict their entry because local textile units have been complaining of unfair competition from imported used garments.

The economics of recycling is profitable, the prices of the cotton yarn that is needed to support Panipat’s Rs10,000 crore furnishings business are up 40% in the past six months, and the costs can be halved by using recycled yarn from imported used fabrics.

Textiles exporters prefer recycled cotton yarn for they are production-friendly and   customers want cheap rates and are less quality conscious.

However, the old-clothing business has come under attack from the textile lobby. A parliamentary committee set up to look into the issue of worn clothing imports had observed that illegal imports were hurting local Textiles.

The newly formed National Committee on Textiles and Clothing has urged the government to stop the import of used clothes from China, Bangladesh and Indonesia as the domestic textile industry is facing loss of exports, increasing imports and lack of demand.

.Second-hand clothing is thereby culturally framed as waste, as a surplus, and as a morally-charged product that has a powerful redemptive capacity for donors, multiple recyclers and secondary consumers. 

Two-thirds of collected used clothing is commercially exported for reuse in developing countries, and it is as a freely-traded commodity that it is claimed to grow markets and support livelihoods in the global south, while undermining the prospects of weavers.

Imported used clothing is ubiquitous in India despite highly restrictive tariff barriers, and the Indian market provides a thought-provoking example since in this case the trade is neither fair nor free.

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