Tribune press service

Mukesh Tandon

Panipat, May 22

The Russian-Ukrainian war, rising cotton yarn prices and transportation costs have hit Panipat’s export business by up to 60% this year. The cancellation and stoppage of orders have put exporters in difficulty.

Panipat typically has an annual turnover of around Rs 45,000 crore, of which Rs 15,000 crore comes from exports alone. About 450 units operating here export handloom products, blankets, sheets, cushions and hundreds of other items worldwide. Lalit Goyal, chairman of the Panipat Exporters Association, said cotton yarn prices had risen to around 330 rupees per kg from 160 rupees per kg earlier. Open-ended yarn, which was previously available at Rs 120 per kg, had now risen to Rs 170-190 per kg, he said.

The slowdown in exports began at the beginning of this year. There were hardly any new orders from foreign buyers. Previously placed orders have also been canceled or blocked by them, Goyal claimed.

“If the situation does not improve in the coming days, textile exporters will lose business worth around Rs 7,000-8,000 crore this financial year. This will be a big setback for exporters based in Panipat,” said Ashok Gupta, vice president of the association, said soaring transportation costs had increased the cost of production by 15 to 18%. led to a fall in demand, thus negatively affecting the textile industry in Panipat. If the situation does not improve, the employment crisis will also set in,” he said.

industry

• Rs 45,000 cr annual turnover of the Panipat textile industry
• Rs 15,000 cr out of this comes only from exports
• Rs 8,000 cr likely reduction in exports, if the situation does not improve
• 450 functional textile export units at Panipat

The breath

• Rs 330 per kg is the price of cotton yarn; against Rs 160/kg earlier
• Rs 190 price per kg of open-end wire; from Rs 120/kg
• 18% increased production costs due to increased transportation costs

#panipat #russia ukraine war