Amid the economic slowdown due to the global and domestic lockdown, the Punjab’s textile industry players have pegged losses at around ₹2,000 crore so far.
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“The collective turnover of the textile industry here [Amritsar] is between ₹7,000 crore-₹8,000 crore yearly. The shutdown has its huge cascading impact on the trade. The complete closure of the wholesale and retail markets has dismayed the clothing sector, which is facing a bleak and uncertain future. The industry has already suffered a loss of not less than ₹2,000 crore,” Amit Kandhari, senior member of the Amritsar Textile Processor Association (ATPA), told The Hindu.
Mr. Kandhari said the current year is a washout with payments and new orders having 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 to the spike in the virus cases and very precarious financial conditions. This segment can be revived provided all supply chains including all textile outlets are opened and retail showrooms start operating in full swing that too in the next two months. Otherwise, it would not be possible to redeem their payment stuck at various levels across the board,” he said.
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P.L. Seth, a prominent shawl manufacturer, said the government must ensure protection of the dues. “In case the lockdown is further extended for two months, this sector would not only become sick but also a majority of the units would fall under the “NPA category”, he said. “The State and the Centre should allow the opening of small weaving units to operate the night shift with limited 10-15 labour and staff,” said Mr. Seth, who is also the president of the Shawl Club.
A textile mill owner Sandeep Sajdeh said with blocked orders and funds, it would be extremely hard to pay wages and salaries. “The export orders for woollen fabrics are in the pipeline but the conditions for re-opening mills make it very difficult to operate them. “My export shipment is stuck at the Bangladesh border awaiting clearance for more than one month. I am hoping the lockdown will ease and the consignment would reach Bangladesh.
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“Amritsar, which is a thriving textile business hub for the last one century producing woollen fabrics, shawls, blankets besides the large number of nylon knitting and embroidery mills is on its toes as the opening of this segments is facing total uncertainty with depressing economic situation,” he said.
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 of waiver of bank interest for a minimum six months and deferment of term loan EMIs for at least one year.
“The governments should open up the ESI and the PF corpus worth over several thousand crores and come to the rescue during the huge payment crisis as the industry has literally no resources to pay wages. On the GST front, at least 50% relief be provided which would help the industry not only to survive but also grow,” he said.
