COVID-19 effect on domestic & export business at textile hub in Haryana

SATISH HANDA

COVID-19 epidemic outbreak has adversely affected domestic as well as export business at Haryana’s textile hub Panipat in past over a year due to lock down and Corona curfews declared by the government. Thousands of industrial units at Panipat manufacturing textile and handloom goods and blankets in the town doing annual business worth over Rs 60000 crore which include Rs 40000 crore business in the country and over 20000 crore business in export markets also offering employment opportunities to lakhs of workers. The industry suffered not only heavy financial loss but also production loss since hardly 30-35% workers were left in the town as most of the migrant labourers left for their native places during first wave of COVID- in 2020 when all factories were closed down due to lock down by the government never returned.

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According to information by large number of entrepreneurs running textile and handloom industrial units at Panipat as well as large number of ancillary units including dyeing units, yarn manufacturers, water jet cloth, laces and packing material are facing severe slump due to demand recession in indigenous business since past over a year and are dependent only on export business presently witnessed relief to some extent since some of he manufacturers were having old orders remained  unexecuted by them last year. Most of the textile and handloom manufacturers told that they are now left with only handful of permanent employees. They further disclosed that most of the finished stocks manufactured by them are now lying dumped in their godowns since a long times in the absence of orders. However, exporters at Panipat told that they are getting export orders but the rates desired by them are not accepted by the manufacturers at Panipat due to drastic rise in the prices of raw material including thread and yarn. They said, thread is being sold at nearly 25% higher rate at Rs 90-92 per kg at present and Polyster threat earlier available at the rate Rs 82 per kg is now available at the price Rs 120 per kg.

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Panipat manufacturers told that there is no demand for 3D bed sheets, sofa cloth, laces and water jet cloth available at cheaper rates at present since all such manufacturers have closed their units in the absence of orders. Panipat famous for manufacturing Mink blankets in the country as well as in world. The manufacturers told that they had dull sale during past year because of lock down and poor orders received from domestic as well as export markets. They said, moreover the prices of yarn to manufacture such blankets was so higher they failed to get orders and despatch material timely last year and as a result of spread of second wave of COVID-19 at present they are unable to start production at present likely to have dull season again in coming winter season.

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