Ludhiana [Rajeev Sharma]. Corona Virus has also stirred up industry and business. Entrepreneurs already facing the economic downturn fear that due to Corona, the state of the economy may be even more terrible than the 2008 recession. Hosiery entrepreneurs believe that the winter season was good, but now the corona virus is spoiling hosiery’s shopping schedule. Raw materials, yarn, fabrics and accessories are not being procured from China.
The entrepreneurs say that the Woolen hosiery industry in Ludhiana has a turnover of about eight thousand crores. The previous season went well when there was a good winter, but now Corona has cooled the enthusiasm of the entrepreneurs. These days hosiery entrepreneurs go abroad and buy raw materials. In addition to raw materials in hosiery, up to 80 percent of the dyeing and chemical or raw materials come from China. All accessories and textiles of wool hosiery comes from China. Production in China is stalled and imports have been reduced.
70 percent goods comes from China: Bansal
Sham Bansal, former president of the Wool Club, said that a new season of wool hosiery is beginning. Up to 70 percent of the industry’s dependence is on China. Now there is a problem with the absence of fabric from China. A lot of readymade garments also come from China. There is also a shortage of summer goods with retailers due to the stoppage of imports. Shortage of raw materials may affect hosiery production by 20 percent.
Now acute shortage of raw materials: interest
According to Rajat Sood, general secretary of the Ludhiana Dyeing Association Cotton Division, most of the dyeing and chemicals come from China. Due to the Corona virus, there is now a huge shortage of raw materials. Instead of 500 kg of dye, 50 kg is hardly available. Prices have gone up by 35 percent. In this case, the rate of dyeing can also rise up to 20 percent.
Problems of hosiery industry will increase further: Jain
Sudarshan Jain, head of the Knitwear Apparel Manufacturers Association of Ludhiana, said that entrepreneurs have canceled foreign visits due to the virus. We are not getting goods from China. Due to this, production schedules are not being created. The industry is waiting for the situation to improve. If the problem is prolonged, then the problems of the hosiery industry will increase further.
Governments should take initiative to give relief: Lakra
Ajit Lakra, head of the textile division at the Federation of Industrial and Commercial Organizations, says that raw material is not coming from China. Prices have increased by 10 percent. Governments will also have to take initiative to provide relief to the industry.