Textile mills and cotton-weaving powerlooms in Ichalkaranji, better known as the Manchester of Maharashtra, are facing a strange situation. Since demonetisation, cloth traders have been offering them payment only in invalid currency. Mills unwilling to accept such payment face the threat of cancelled orders.

Since mills have no option but to refuse, contracts worth more than Rs 100 crores have been scrapped. The demand for chemicals at the looms has gone down drastically due to cancellation of orders. The nearly 1.25 lakh looms in the town were expecting good business after the bountiful monsoon this year and had secured orders from north India and Karnataka. But their expectations have been shattered.

In just 15 days, the daily turnover at the textile hub has fallen from Rs 45 crores to Rs 13 crores. In turn workers at these units haven’t got their wages. There are more than 80,000 workers engaged in the looms and the yarning, sizing and processing units. Most of these workers are from Uttar Pradesh and Bihar. Ichalkaranji is a major textile hub in the country and sends ready made clothes to Ahmedabad, Mumbai, Madhya Pradesh, Delhi, West Bengal and Karnataka. It has thrived on the booming cotton trade that caters to the needs of major national and international brands.