Lockdown gives a blow of Rs 5000 crore to Ludhiana Volun Hosiery industry, 50% less production this year

Sudarshan Jain, president of the Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL), said that factories were closed due to the first lockdown, production usually takes place in the same months. Then when the lockdown opened, there was no labor, because they had returned to their respective villages. Therefore, the production of Volan Hauzari which was completed by July, went on till the winters this year and only 40–50 per cent could be produced. Because the supply had to start again. Jain says that the raw material that has been left a bit, the product will be ready in the next 2 months and it is expected that it will also be sold.

Jain further said that the finished product is selling fine though. This year, due to the forecast of a good winter, the amount of finished goods is expected to be sold out. But given the second wave of Covid 19, if there is a lockdown again in big markets like Delhi, then the business may suffer more.

Supply too late

Regarding the supply of goods, Jain said that every year before the onset of winter, the supply of finished goods used to reach the vendors. In July, the consignment retailers started to come out and by the end of October factories were closed. But this year when production was late, the supply also got delayed. This year, orders could not be booked properly, people prepared the product on their own estimate.

Farmer movement is also causing damage

Vinod Thapar, chairman of Knitwear Club, Ludhiana, says that the Wullan hosiery industry has lost Rs 5000 crore this year. Production is less, but this year exports have been negligible. This is also a big shock. Due to the agitation of farmers in Punjab, transportation rail tracks are jammed and goods trains are not running due to dispatching of products.

This time there was no dumping from China

The domestic waste hosiery industry also had to face the product coming from China every year, which caused a blow to the sale of the products made in the country. But this year, goods have not arrived from China, which is a good news for the country’s hosiery industry. There is good demand for domestic products due to lack of Chinese goods. However, there is a disadvantage that some of the fabrics and accessories used in Woolan Hosiery Garments, which used to come from China, have not been able to come. This has created some problems. Thapar says that 95 percent of the accessories of Wulan hosiery products are imported from China but could not come this year. It has had some effect.