India’s Buying Agents Association (BAA) recently appealed to large international companies that source apparel, handicrafts, leather goods and carpets, especially from small and medium companies in India, not to cancel export orders. The step would support the livelihoods of artisans and craftsmen, BAA chairperson Christine E Rai said in a video message. BAA believes small and medium enterprises that rely on exports are particularly vulnerable. BAA, formed in 2016 with the support of buying agencies and the Export Promotion Council for Handicrafts, represents buying agents that act as a bridge between overseas buyers and Indian exporters and work with key international companies. Rai said a large chunk of India’s exports across apparel, leather goods, furniture, carpets and handicrafts among other sectors, is facilitated by BAA members. “We began witnessing cancellation of orders about two weeks ago and we are looking at millions, if not billions, of dollars of cancellations of export orders right now. It started with apparel and the fashion sector and has now snowballed to the other categories that include home furnishings, carpets, leather goods and handicrafts. Many of these MSME exporters don’t have the cushion to survive this crisis,” she said. “International companies are also renegotiating payment agreements. Many are asking for 120 days instead of the usual 60 days to make payments. We are asking them to instead look at making staggered payments to help MSME exporters pay wages to their artisans and workers and manage their fixed costs,” she added. The association has also petitioned the government to support exporters as well service providers in the export sector. Its recommendations include exemptions in goods and services tax to all such service providers for the next six months as well as tax holiday for those with up to ₹10 crore turnover in exports.
