Haryana: Bahadurgarh's Footwear Industry Suffer Huge Losses due to Short Winter Season, Increase in GST
Representational Image. Image Courtesy: Needpix.com
The footwear industry of Bahadurgarh (Haryana) is undergoing a rough period after suffering huge losses due to a decline in footwear sales during the winter season.
As per the Footwear Park Association, Bahadurgarh, footwear sales this winter declined by around 25% (Rs 2,500 crore) compared to the corresponding period last year.
The organisation has attributed the decline to "a short spell of cold, fewer weddings in November and a considerable rise in the goods and services tax (GST)."
As per The Tribune, the footwear industry of Bahadurgarh houses around 2,000 large, medium and small-scale units; these units are situated in "Modern Industrial Estate (MIE), the HSIIDC Footwear Park and surrounding areas" of the town, employing over two lakh people.
"The total estimated annual turnover of the Bahadurgarh Footwear industry is around Rs 20,000 crore, and more than 50% comes in the winter season from October to February. Over 25 lakh pairs of shoes, sandals and slippers are manufactured in the industry every day, but the recently concluded winter season has caused a huge loss of Rs 2,500 crore to the industry following a 25% fall in sales," said Narendra Chhikara, senior vice-president of the Footwear Park Association, Bahadurgarh.
Chhikara explained that the footwear production for an upcoming winter season usually starts around July every year and goes on for three months; the industry expects a considerable boom in demand from October to February. However, this time around, due to several factors listed above, the demand didn't materialise as it does every year, leading to enormous losses for the industry.
"Fashion and design play a vital role in the sale of footwear as customers do not like out-of-fashion footwear. Huge stock of shoes has remained unsold this winter season, forcing manufacturers to sell these at throwaway prices to get whatever they can from them. Rising inflation is also another vital factor, which makes the customers spend on footwear thoughtfully," he said.
Chhikara also highlighted the effects of the increase in GST from 5% to 12% on footwear priced less than Rs 1000/pair.
"High prices also took a toll on the sales, so we demand the government to roll back the hike in the GST," he added.
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