Panipat: Yarn industry reels under crisis

Tribune News Service

Mukesh Tandon

Panipat, June 22

The yarn industry here is reeling under crisis. Yarn industrialists were forced to run their industries in a single shift. There is over 50 per cent decline in production of recycled yarn in the past two months while the rate of yarn fell by 20 per cent due to the shrink in demand of handloom products in domestic and global market.

Panipat globally known as ‘Handloom City’ is the hub of recycling industry, resulting in production of yarn out of discarded clothes. This yarn is being used for making blankets, shawls, curtains, bath mats, foot mats, bedsheets, bed covers, carpets, kitchen items, cushion covers, and other handloom products. The final products are then sold in the domestic market and exported in the global market, especially in the USA and European countries.

The Handoom city has a turnover of approximately Rs 50,000 crore of which Rs 15,000 crore comes from export. But, due to high inflation in the USA, slowdown in Germany and disturbance in the European countries due to a year-long Russia-Ukraine war, the Panipat’s export industry was badly hit and recorded 50 per cent slowdown. Apart from this, the domestic market has also recorded a downfall.

Pritam Singh Sachdeva, President, Panipat Industries Association and Northern India Roller Spinners’ Association, said Now, the production of yarn is only 50 per cent, but the consumption is less than 50 per cent, due to which the stock has increased, he said.

Even, the recycled yarn rate has also decreased almost by 20 per cent. Earlier, the rate of yarn was Rs 100-110 per kg, but now, the rate is only Rs 80-82 per kg, Sachdeva added.

Maximum industries here are dependent on recycled yarn for manufacturing their products, he said. The industries here are running only in single shifts due to low demand for yarn, but in Southern India, the industries have been shut for 15 days, he asserted. Now, Panipat industrialists are also planning to shut their industries, Sachdeva maintained.

The industry used 80 per cent cotton to manufacture handloom products, but the demand from overseas buyers in the first quarter was low, he said. The exporters hoped for a good business but received poor response , Vinod Dhamija, chairman, Haryana Chamber of Commerce & Industries, Panipat chapter, maintained.

Yarn production dips by 50%

As many as 40 open-end spinning mills here used to produce almost 30-lakh kg yarn per day, but for the past two months the demand for yarn has gone down.Now, the production of yarn is only 50 per cent. — Pritam Singh Sachdeva, president, Panipat industries association

High inflation has led to slowdown

We were exporting luxurious items to the USA and European countries, but due to high inflation in the USA and disturbance in Europe due to a year-long Russia-Ukraine war, export industries has recorded a slowdown. — Vinod Dhamija, chairman, Haryana chamber of commerce & industries, Panipat chapter,

Dependent on export industry

The Yarn industry is dependent on the export industry, as they get good orders and the demand for yarn is more. But, this year, demand has gone down drastically. — Siya Ram Gupta, yarn manufacturer

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