Amid the economic slowdown during the ongoing nationwide lockdown, Punjab’s textile industry has pegged losses at around ₹2,000 crore so far.
“The collective turnover of the textile industry here (Amritsar) is between ₹7,000 crore and ₹8,000 crore yearly. The global and domestic shutdown for the last two months due to the pandemic had huge cascading impact on textile trade. The complete closure of wholesale and retail markets across all continents have dismayed the clothing sector, which is facing a bleak and uncertain future. The industry in Amritsar has already suffered a loss to the tune of not less than ₹2,000 crore,” Amit Kandhari, senior member of Amritsar Textile Processor Association (ATPA), told The Hindu .
Mr. Kandhari said that the current year is a total washout with payments as well as new orders have been put on hold by customers, which has virtually created a debt trap for the entire clothing and garment business.
“We are unable to operate our units under the current fluid situation due the spike in COVID-19 cases in India and other countries and very precarious financial conditions. This segment can only be revived back provided all supply chains including all textile outlets and retail showrooms start operation in full swing that too in next two months, otherwise it would not be possible to redeem their payment stuck at various level across the board,” he said.
‘Open weaving units’
P.L. Seth, a prominent shawl manufacturer, said that the government must ensure protection of the outstanding dues.
“In case the lockdown is further extended for next two more months, this sector would not only become sick but a majority of the units would come under “NPA” category,” he said.
“The State and the Centre should allow the opening of small weaving units to operate the night shift with limited labour and staff,” said Mr. Seth, who is also president of the Shawl Club.
Another textile mill owner Sandeep Sajdeh said that with blocked orders and funds, it would be extremely hard to pay wages and salaries.
“The exports orders for woollen fabrics are in the pipeline but the constraints of reopening of mills is a huge task with supply chains under current lockdown was making it very difficult to operate,” Mr. Sajdeh said.
“My export shipment is stuck at Bangladesh border awaiting clearance for last one month. I am hoping lockdown will ease and the consignment would reach Bangladesh,” he added.
“Amritsar, which is a thriving textile business hub for the last one century producing woollen fabrics, shawls, blankets besides having large number of nylon knitting and embroidery mills is on its throes as the opening of this segment is facing uncertainty with depressing economic situation,” Mr. Sajdeh said.
‘Devise exit strategy’
Ashok Sethi, a member of the task-force constituted by the Punjab government to devise an exit strategy from the lockdown has sought an immediate financial stimulus by way to total waiver of bank interest for minimum of six months and deferment of term loan EMIs for at least one year.
“The governments should open up the ESI and PF corpus worth over several thousand crores and come to the rescue during huge payment crisis as the industry has literally no resources to pay wages at present. On the GST front at least 50% relief be provided which would help the industry not only to survive but also grow,” he said.
