Haryana: Panipat Yarn Industry Faces 50% Output Decline, 20% Price Fall
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New Delhi: The recycled yarn industry in Panipat has been facing a decline of over 50% in the past two months. In addition, shrinking demand for handloom products in the global and domestic markets has led to a 20% fall in yarn rates, according to Pritam Singh Sachdeva, president, Panipat Industries Association and Northern India Roller Spinners’ Association.
According to a report in The Tribune, the 50% slowdown in production is due to two factors – high inflation in the US and the disturbance in European countries due to the year-long Russia-Ukraine war. Both these events have hit Panipat’s export industry badly. The city reportedly has a turnover of approximately Rs 50,000 crore of which Rs 15,000 crore comes from export.
“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”, Singh told The Tribune, adding that “Now, the production of yarn is only 50%.”
“Even the recycled yarn rate has decreased almost by 20%. Earlier, the rate of yarn was Rs 100-110 per kg, but now, the rate is only Rs 80-82 per kg” Sachdeva added.
Panipat, widely known as the ‘Handloom City’, deals largely in the production of yarn out of discarded clothes. The yarn is used to make several products, such as blankets, shawls, curtains, bath mats, foot mats, and bedsheets. The final products are either sold domestically or exported globally, largely to the USA and Europe.
According to Sachdeva, other parts of India, especially in the South and Gujarat, are experiencing something similar. “Maximum industries here are dependent on recycled yarn for manufacturing their products, the industries here are running only in single shifts due to low demand for yarn, but in South India, the industries have been shut for 15 days”
“Now, Panipat industrialists are also planning to shut their industries” he added.
In a statement, Siya Ram Gupta, a yarn manufacturer, told The Tribune, “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”.
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