The yarn industry in Panipat, known as the ‘Textile City,’ is grappling with a crisis due to the slowdown in the export industry. Spinning mills in the region have scaled back production by 50 per cent due to poor demand in overseas markets. Previously, these mills produced around 40 lakh kg of yarn daily, but now that figure has dropped to 20 lakh kg.
Panipat, a hub for the recycling industry, typically converts discarded clothes into yarn, which is then used to make various products such as blankets, shawls, and curtains. These products are sold domestically and exported to countries like the USA and Europe, contributing significantly to Panipat’s annual turnover of approximately Rs 50,000 crore.
Industry associations have expressed concern over the current recession period, attributing it to the Russia-Ukraine war causing a downturn in the European market and high inflation and recession in the USA. Over 100 open-end spinning mills in Panipat heavily relied on the export industry, leading to a 50 per cent reduction in production.
Pritam Singh Sachdeva, president of the Panipat Industries Association and Northern India Roller Spinners’ Association, stated that the industry had never experienced such a prolonged recession in the past three decades. Uncertainty regarding cotton and cotton yarn prices and disrupted payment chains have further added to the industry’s difficulties.
Vinod Dhamija, chairman of the Haryana Chamber of Commerce, Panipat Chapter, emphasized the interconnectedness of various units in the industry and highlighted the 50 per cent decline in demand from overseas buyers, which has directly impacted the yarn industry.
As the export industry faces challenging times, the yarn industry in Panipat grapples with an uncertain future.
