Ludhianas hosiery industry in doldrumsJanuary 21st, 2009 - 11:11 pm ICT by ANI
By Karan Kapoor
Ludhiana, Jan.21 (ANI): The hosiery industry of Punjabs Ludhiana city is confronted with challenging times following a delayed onset of winter and also due to the impact of global financial slowdown.
The industry has failed to meet its expected growth target. The volume of exports by Ludhianas businessmen of the hosiery industry to American and European markets has gone down sharply. The fluctuations in the market and the strengthening of the dollar have caused more problems.
The manufactured stocks have piled up in godowns but there are no takers. Though the government has announced several relief measures to support the textile industry, but it seems they are not enough.
Harvinder Pal Singh, a hosiery manufacturer in Ludhiana is a worried man. His medium-scale unit is faced with a tough time. The late onset of winter has also caused a sudden drop of over 30 per cent in production. A part of Harvinders unit has been shut down and daily wagers have lost their jobs.
The market was down last year and this year there has been an increase in the price of chemicals. Fluctuation in the exchange rates of dollar has also been noticed this year. The business was low last year following which we have suffered a fall of about 25-30 percent in the exports and about 40-50 percent in the domestic market as well and the main reason being shorter winter period this year, said Harvinder Pal Singh, the manufacturer.
There has been an impact of global warming as well and the rates of raw materials have increased a lot, which is affecting our sales hugely, Harvinder added. The package of Rs. 1400 crores (280 Million USD) that Prime Minister Manmohan Singh announced recently is not adequate for us and the benefits that we have been given are basically for the exporters. Our demand from the government is that they should announce a relief package for all and not only for exporters, said Bhushan Maine, another manufacturer. About 400,000 are related to about 15,000 small and medium hosiery enterprises of Ludhiana. This hosiery industry holds a turnover of over 1.2 billion USD, including domestic and international trade is.
Ludhiana’’s hosiery industry is known around the world both for its low cost and quality. In 2007-08, the industry did quite well by registering a turnover of 800 million USD. However, presently, it is undergoing through difficult times because of the financial crisis.
To resolve textile industry crisis, the government has introduced Technology Up-gradation Fund Scheme (TUFS) to facilitate the modernization and up gradation of the textile industry both in the organized and unorganized sector. But the Ludhiana hosiery industry is currently looking for financial assistance to overcome the crisis. (ANI)
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