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Ludhiana textile cluster troubled by multiple challenges

01
Jun '10
The overall scenario whether domestic or exports has improved for the Indian textile and apparel sector, but the picture is still blurred for the innumerable small and medium sized industries in the textile cluster of Ludhiana.

The biggest challenge faced by the cluster is the pathetic electricity supply situation, with long power cuts. To add to that is the perennial labour problem created by a government policy which guarantees hundred days of employment to workers.

Apart from which raw material prices like those of cotton yarn has hit the roof-tops in the last few months, along with high working capital costs, which has compounded the situation as it has increased the production costs.

Speaking to fibre2fashion, Mr Ajit Lakra, Managing Director of Superfine's Knitwear Ltd said, “First & foremost problem are the prices of raw materials. Yarn of all kinds, be it cotton yarn or any other variety, the prices are very high, which makes it difficult to cope, so we are requesting government to put a duty on yarn exports.

“Second problem is of electricity. We are not getting adequate electricity. There is complete cut-off of electricity for two days in a week. Normally we pay Rs five per unit, but since we have to use generators to operate our factories, we end up paying Rs 12 per unit.

“Third problem is of labour. We are dependent on migratory labour from UP and Bihar and in May and June they go home. And these days we are facing an acute problem of labour as workforce is very less, due to which both quality and productivity have been affected very badly.

“The fourth problem is that the bank interest rates are very high, which adds and increases our cost of production. The combination of all problems is troubling us and we do not see any immediate relief”, he concluded by saying.

Fibre2fashion News Desk - India


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