Panipat Yarn Production Slumps 50% From Export Slowdown
With a slowdown in Indian textile finished product exports, the yarn industry in Panipat, is also experiencing a crisis, due to which spinning mills have reduced production by 50 percent.
Around 40 lakh kg yarn was being produced in Panipat, which due to a poor demand from overseas markets; production has now slumped to 20 lakh kg per day.
Panipat has an annual turnover of around Rs 50,000 crore, of which Rs 35,000 crore is earned from the domestic market and the rest from exports.
“The Panipat export industry actually flourished during the Covid-19 pandemic, however, it is now facing a recession now,” Pritam Singh Sachdeva, President of the Panipat Industries Association said.
“As Europe is badly hit by the Russia-Ukraine war and the USA is reeling with high inflation and recession these days, the export industry here has been badly hit,” Sachdeva added.
According to Sachdeva, more than 100 open-end spinning mills in Panipat used to produce around 40 lakh kg yarn per day, which depended upon the export industry.
“Due to a shrink in demand from USA and European countries, the mills have reduced production by 50 percent,” he stated.
“We have never seen such a long recession period in the industry in the past 30 years. The industry witnessed many export slumps but these ended within a short span and industry again reached a boom,” Sachdeva observed.
Sachdeva also informed that the payment chain has also been disturbed due to a long slowdown in the domestic as well as overseas markets.
“Panipat is also a hub for the textile recycling industry. Used clothing is recycled in to fibres and then yarns, which are subsequently used in blankets, shawls, curtains, bath mats, etc,” the Tribune reported.
