The textile industry in Punjab’s Amritsar’s is grappling with the twin challenge of high raw material cost and low demand in the current Covid-hit market. The cost of textile manufacturing has increased considerably after yarn spinners and manufacturers of dyes and chemicals increased the prices of their products. On the other hand, a moderate demand for finished products in the market did not give them enough room to pass on the hike.
Over 1000 textile units in the district are engaged in manufacturing tweed, blazers, shawls, blankets, dress materials, suitings and shirtings. With a combined annual turnover of over Rs 10,000 crores, it offers employment to thousands of skilled and unskilled workers.
The hike in prices of yarn dyes and chemicals has prompted big domestic yarn spinners and manufacturers of these products to pass on the price rise to textile manufacturers. For instance, polyester cotton blended yarn before Covid-19 used to cost Rs 175 per kg and now it is Rs 250 per kg. Similarly, polyester filament yarn costs Rs 125 per kg and was priced at Rs 80.
Demand for textile products has been further affected by the rise in prices of final product due to increase in prices of input cost on its basic raw materials - yarns, dyes and chemicals.