Union Budget 2022: Punjab hosiery association seeks government intervention in cutting down raw material cost

New Delhi, 22 Jan (KNN) Union Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2022-23 on February 1. The budget session of Parliament will begin on January 31 with the address of President Ram Nath Kovind to both the Houses. 

Several Micro, Small, and Medium Enterprises (MSMEs) from various sectors are eying at the budget with a ray of hope that the forthcoming budget might strengthen them to deal with the upcoming challenges which they are facing amid an economic slowdown.

While speaking to KNN India, Federation of Punjab Hosiery Association President, PS Chugh said, “The raw material required by the hosiery industry is running very costly. During the last two years, prices of yarn and accessories are very high it should be reduced. Government should take care of the hosiery industry by providing some facilities and incentives during the budget”.

The upcoming budget should focus on the decrease in prices, there should be the least burden on the common man”, he added.

Ludhiana city in Punjab is famous worldwide for its hosiery and readymade garments industry. The hosiery items and readymade garments manufactured here are supplied throughout the country and also exported to many other countries. In India, this city is the largest exporter of hosiery items.

The major sectors, which have made a significant contribution towards exports from the state are woolen textiles, bicycles and parts, hosiery goods, hand tools, leather products, agro/food processing (food products and beverages), textiles, basic metal, and metal products, machinery other than electrical and electronics industry. These sectors have contributed about 70% of the total industrial output.

There are at least 12,000 small and major industrial units that manufacture hosiery products in Ludhiana. Each unit has a different scale of production. While a small unit could manufacture 50-60 sweaters in a day, a major unit could produce 3,000-5,000 pieces a day. However, the hosiery business is seasonal and manufacturing takes place from April to November. 

A small unit expects a profit of Rs 8-10 lakh a season while the profits of major units run in crores of rupees.