Russia-Ukraine war may affect Panipat textile industry
02 March, 2022
If the ongoing Russia-Ukraine war lasts for the next couple of days, it will cost heavily on the country’s handloom and textile hub Panipat as it has already affected import and export with European countries
If the ongoing Russia-Ukraine war lasts for the next couple of days, it will cost heavily on the country’s handloom and textile hub Panipat as it has already affected import and export with European countries.
Industrialists say there has been a fall in demand for handlooms in India and abroad soon after the war began last week.
Panipat industrialists said they have orders of around ₹4,500 crore from many European countries and Russia, if the war continues for the next couple of days, it will affect trade. “The impact of war can already be seen on imports as prices of raw material (dye chemicals) imported from Germany and Turkey has already witnessed an increase of 10-35%. But the war will have long-lasting impact as well and the prices may increase further,” said Sanjeev Manchanda, president of Panipat Dyes and Chemical Traders’ Association.
He urged the government to provide some relief on shipment charges and import duties.
Pritam Singh Sachdeva, president of Panipat Industrial Association, said, “We can see the physiological impact of the war on the industry. Since Europe is the biggest market of Indian handloom, especially home furnishing items made in Panipat.”
“Most European countries are directly or indirectly linked with the war. This will affect the industry in Panipat,” he added.
He said production was already affected but the industrialists have to wait for a few more days. Production will be stopped if the crisis situation lasts the month.
“The industrial movement got affected to some extent. Increase in prices of raw material will definitely affect the trade as it will be difficult for industrialists to deliver pending orders on old price,” said Manish Garg, of Dream Collections, Panipat. He said the biggest impact of the war will be on crude oil and this will affect trade and transportation.
Local trader Bhim Rama said even sanctions imposed on Russia will affect prices of petroleum products and chemicals causing loss to the dyeing industry.
As per figures, there are around 10,000 small and large handloom units in Panipat and annual export remains at around ₹10,000-12,000 crore and 80% of the total production is exported to European countries.
After Bhadohi, Panipat is the second largest manufacturer of carpets in country. The carpet exporters here have to compete with Turkey and China.
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Source: www.hindustantimes.com