Rapaport Analysis: Indian Manufacturers Feel the Pinch

In an extensive analysis, Rapaport's Joshua Freedman takes stock of market sentiment in India and the US. While Indian manufacturers are feeling the pinch of bloated inventories, weak demand and sharp declines in polished prices, struggling to sell even at reduced prices, US traders have more flexibility in aligning supply to actual demand, Rapaport states. One trader commented "A lot of Indian manufacturers rely on debt, making it harder for them to sell on memo to retailers." Freedman writes that a myriad of events and global trends are the root cause underlying the current crisis, leading to steep highs and lows, impacting manufacturers flexibility to adapt to changes in supply-demand dynamics. India's trade body GJEPC meanwhile says a new moratorium on rough imports is not on the agenda, saying increased marketing for long-term growth of consumer demand, especially towards China, should be a key priority.