Industry stakeholders say that supply of cheap Chinese polyester cloth is hitting the prospects of local weavers, spinners, knitters, processors and export manufacturers as they are unable to supply at competitive prices. Ludhiana’s textile MSMEs are referring to this phenomenon as “dumping” of cheap Chinese fabric.
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“We request the government to save Ludhiana’s hosiery goods industry from these cheap fabric imports. It’s raising concerns around job losses and business closures,” says Manoj Jain, Managing Director of Ludhiana-based Vallabh Yarns. “Ludhiana’s hosiery industry will be damaged beyond repair if the import of cheap fabrics continues.”
The cost of garments made by Chinese fabric is nearly 10-15% lower when compared with those that use local raw materials, say industry stakeholders.Ludhiana is otherwise an ideal destination for hosiery industries due to easy and reliable raw material supply and availability of skilled manpower, says Jain. Ludhiana’s hosiery sector is one of the oldest clusters in the country.Another local textile manufacturer says that cheap polyester cloth imports from China and Bangladesh are currently being mislabelled as cotton and are only paying 5% import duty and successfully evading 20% duty. Such polyester cloth or fabric imports are otherwise subject to 25% import duty. Easy credit availability
Ludhiana is a Rs 20,000-crore textile hub of Punjab. It accounts for over 90% of the apparel production for the Indian market.
Small hosiery units in Ludhiana could also gain immensely if credit availability improves, says Sudhir Nayyar of Kapil Hosiery Works. “Ludhiana is an ideal destination for the hosiery industry, hence it has made a mark across the country over the years. There are no issues regarding skilled labour and raw material availability here. Things would only get better, if the hosiery units here could get easy credit,” adds Nayyar.
iStockLudhiana is a Rs 20,000-crore textile hub in Punjab.
Ludhiana-based hosiery industry’s key markets are Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar and some Northeastern states. Ludhiana’s hosiery cluster is famous for winter garments like jackets, sweaters, thermals, cardigans, pullovers, inners and shawls. October, November and December are considered the critical months for Ludhiana’s hosiery sector.
Meanwhile, with an eye on the state’s entrepreneurial abilities, SIDBI, in association with The Economic Times, is holding an MSME Summit on January 19 in Ludhiana. The summit is a part of a series of events nationwide that will bring together micro, small & medium enterprises (MSMEs), policymakers and ecosystem enablers. The first event took place in Indore on January 9 and second in Bhubaneswar on Jan 12, followed by events in cities such as Belagavi, Rajkot and Aurangabad.
