Panipat, June 23 (KNN) The Panipat yarn industry witnessed over 50 per cent decline in production of recycled yarn in the past two months while the rate of yarn fell by 20 per cent due to the shrink in demand of handloom products in domestic and global market.

The Handoom city has a turnover of approximately Rs 50,000 crore of which Rs 15,000 crore comes from exports. But, due to high inflation in the USA, slowdown in Germany and disturbance in the European countries due to a year-long Russia-Ukraine war, Panipat’s export industry is reeling under crisis.

Pritam Singh Sachdeva, President, Panipat Industries Association and Northern India Roller Spinners’ Association, said “the production of yarn is only 50 per cent, but the consumption is less than 50 per cent, due to which the stock has increased.”

“The recycled yarn rate has also decreased almost by 20 per cent. Earlier, the rate of yarn was Rs 100-110 per kg, but now, the rate is only Rs 80-82 per kg. The maximum industries in Panipat are dependent on recycled yarn for manufacturing their products,” he said.

Sachdeva informed that the industries here are running only in single shifts due to low demand for yarn, but in Southern India, the industries have been shut for 15 days. Now, Panipat industrialists are also planning to shut their industries.

Vinod Dhamija, chairman, Haryana Chamber of Commerce & Industries, Panipat chapter said, “The industry used 80 per cent cotton to manufacture handloom products, but the demand from overseas buyers in the first quarter was low. The exporters hoped for a good business but received poor response.”

Panipat is the hub of recycling industry, resulting in production of yarn out of discarded clothes. This yarn is being used for making blankets, shawls, curtains, bath mats, foot mats, bedsheets, bed covers, carpets, kitchen items, cushion covers, and other handloom products. The final products are then sold in the domestic market and exported in the global market, especially in the USA and European countries.  (KNN Bureau)