Bulk order cancellations and deferred shipments from apparel buyers in the US and Europe in the aftermath of September 11 have flooded India's domestic market with unsold exports.

Discount retail chains such as Big Bazaar are reported to be sourcing 30-40 per cent of their apparel requirements from accumulating export stocks and selling them at a fraction of the original price - albeit minus the brand labels and hang-tags.

Turning to the domestic market is a last resort for exporters desperate to ease credit losses on downsized orders.