Panipat: Yarn industry is in trouble
The yarn industry here is facing a crisis. The cotton industrialists were forced to run their industry in a single shift. Recycled yarn production has declined by over 50 per cent in the last two months, while yarn rates have declined by 20 per cent due to lack of demand for handloom products in the domestic and global markets.
Globally known as the 'Handloom City', Panipat is the center of the recycling industry, which results in the production of yarn from waste cloth. This yarn is being used for making blankets, shawls, curtains, bath mats, foot mats, bedsheets, bed covers, carpets, kitchen wares, cushion covers and other handloom products. Then the final products are sold in the domestic market and exported to the global market, especially in the United States and European countries.
Handum town has a turnover of around Rs 50,000 crore, of which Rs 15,000 crore comes from exports. But, due to high inflation in the United States, recession in Germany and unrest in European countries due to the year-long Russia-Ukraine war, Panipat's export industry was badly hit and a 50 percent slump was registered. Apart from this, a decline has also been registered in the domestic market.
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, said Pritam Singh Sachdeva, president of Panipat Industries Association and Northern India Roller Spinners Association. Even the rate of recycling yarn has come down by about 20 percent. Sachdeva said, earlier the rate of yarn was Rs 100-110 per kg, but now the rate is only Rs 80-82 per kg.
Most of the industries here depend on recycled yarn to manufacture their products, he added. He said that due to low demand for yarn, industries here are running in only one shift, but industries in southern India have been closed for 15 days. Sachdeva said that now, the industrialists of Panipat are also planning to shut down their industries.
He said the industry used 80 per cent cotton to manufacture handloom products, but demand from foreign buyers was low in the first quarter. Vinod Dhamija, chairman of the Haryana Chamber of Commerce and Industries, Panipat chapter, said exporters were expecting good business but got a poor response.
