The Covid 19 pandemic had a negative influence on numerous sectors worldwide, creating a significant impact on the individual country’s national economies. Maharashtra was the most affected state in India, with the highest number of active cases. This large number of patients resulted in a three-month lockdown and the inability of companies to function.

Malegaon is Maharashtra’s second biggest powerloom cluster. It was one of the worst impacted cities as a result of covid 19 during the early phases of the first lockdown. With industries closed for three months, employees and employers in the powerloom business faced a severe financial crisis.

Mr. Sajid Ansari, President of Malegaon Powerloom Udyog Vikas Sanghatana, said, “Malegaon sector has suffered a lot owing to covid 19. We were helpless and unable to pay our employees due to the lockout, inflicting significant financial hardship for many Malegaon families.”  in an exclusive interview with Textile Value Chain.

“The government has not waived the powerloom industry’s electricity costs for the months when the industries were closed owing to the lockdown. The bill quantities are large, and we industrialists are unable to pay such a large sum. We are attempting to recover from the financial and economic damage inflicted by the lockdown.” Mr. Sajid Ansari went on to say.

Since this week, the Malegaon powerloom industry has been on strike, asking that the government waive their outstanding debts. This strike is anticipated to last until the state administration agrees to their demands. “We also want the government to offer us an electrical bill subsidy. We are in talks with the state administration, and we are hopeful that our requests will be met.

If the industrialist produces sufficient paperwork of the particular industry, the government is willing to give them a subsidy. “We have been in this industry for generations,” Mr. Sajid told Textile Value Chain. “The majority of industrialists are running businesses that were founded by grandfathers or great grandfathers with little or no paperwork. The availability of such papers is a big concern for the majority of us right now.” he added further.

Not only industrialists, but also the labor class, which is an essential component of Malegaon industry, are suffering as a result of this demand and fulfillment method. Mr. Sajid showed displeasure when he told us, “We are attempting to meet the needs of our workers. We don’t want them to be in pain. But we must continue to strike until our demands are met and our expenses are waived.”

The Malegaon sector is also experiencing a number of difficulties as a result of incorrect yarn betting, which results in lower earnings for industrialists and unsuitable yarn sales. The industry also requires a reasonable price for the yarns. Prior to 2016, there was consistency in yarn and commodity pricing. Yarn costs are fluctuating a lot right now in the business.

By: Kshipra Gadey,

Textile Value Chain

Manali bhanushali
Author: Manali bhanushali

Manali Bhanushali