–SATISH HANDA
Entrepreneurs of handloom city Panipat known as world’s textile hub manufacturing textile goods including bed sheets, pillow covers, curtains, blankets, towels, carpets, bath mats and several other products have started losing interest in manufacturing and now switching over to trading business in textile goods predicting Panipat would lose its shine and status after few years. Information reveals, nearly 18000 micro, small and medium industrial units in textile city are involved in providing employment to over three lakh persons mostly working in small scale units in textile field in the town turning sick and looking for government support to remain alive.
According to entrepreneurs, increasing cost of production, non-availability of attractive packages by the government, costly power supply in the state and increasing labour problem are some of prime reasons for manufacturers losing interest in manufacturing and switching over to trading business in past sometime procuring textile goods from manufacturers in Mumbai, Gujarat and other places in the country. Panipat is famous for manufacturing carpets having good demand in indigenous as well as in export markets due to its quality but now carpets imported from China dominating in the country giving tough price war in export markets in the world. Entrepreneurs told that carpets manufactured at Panipat are not in much demand at present due to higher prices. Similarly blankets manufactured in the town are having tough price competition with blankets imported from China.
Information also reveals that business recession has adversely affected employment opportunities at Panipat textile hub since most of the manufacturing units are compelled to reduce their production due to severe slump in business as well as exports failed to exceed Rs 10000 crores annually in past couple of years. According to president of association R.B. Gupta, Panipat textile industry needs attractive subsidy for up-gradation of machinery to reduce production cost and meet competition with products imported from China. He said, up to 40% subsidy is being provided to new textile units in Madhya Pradesh, besides availability of power supply at much cheaper rates to industry as compared to Haryana state. Gupta said, lack of government support to industry in Haryana state disappointing Panipat manufacturers now started jumping to trading business. He said, after implementation of MNREGA scheme by the state government, Panipat textile industry facing severe labour problem. He said there is immediate need for a textile industry sector at Panipat flooded with industrial units in thickly populated residential areas in the town.
