The ongoing turmoil in European markets has put Panipat handloom exporters once again in an atmosphere of uncertainty. If the spell of uncertainty extends, it definitely would have an impact on exports from Panipat.
Handloom products such as carpets, durries, mats, table covers, bed sheets, are exported from Panipat mainly to the US and European markets, which are major export destinations for handloom products from Panipat .
Prem Vijh, president, Panipat Exporters’ Association maintained “Turmoil in Europe has to some extent (five per cent) affected the exports for handloom exporters in Panipat, however exports remained steady, if not trail a north -south path.”
Volatility in cotton prices last year had resulted in handloom exports from Panipat coming down to Rs 2,00 crore 2010-11) as against Rs 3,50 crore in the corresponding period 2009-10.
Ramesh Verma, prsident, andloom Exports Manufacturers’ Association, believes handloom exports this year again would remain below Rs 3,00 crore.
Vijh said conditions for the exporters were certainly not as bright as they would have wanted. Exports have remained steady for now but if uncertainty persists for a longer duration, definitely it would hurt the exporters. For now, the firming of dollar has provided a cushion to the exporters, who are trying to‘re- negotiate’ the deals with buyers abroad, offering them competitive prices.
However, the real impact on handloom exporters in Panipat would be visible after the ‘Heimtextil Fair’ (January), the international fair in Germany, where the handloom exporters get opportunity to buy trade from European markets.
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Europe continues to dominate market for the Rs 3,000-crore handloom industry in Panipat and accounts for 30-40 per cent of the business.
Ramesh Verma, who maintains over 30 per cent business for the exporters, has suffered too. He believes requirement from the overseas buyers was coming down, which indicated troubled times ahead. With problem continuing in export markets, most of the handloom exporters are now focusing on opportunities in the domestic markets, as Verma believes there is a visible trend of exporters in Panipat now focusing only on the domestic markets.