Panipat handloom units weaving a new fabric

The Rs 2,200-crore handloom industry of Panipat is undergoing an image makeover. The handloom products of Panipat "" also known as the city of weavers "" such as carpets table covers, mats, bedsheets and curtains have occupied a place of pride in the international markets.

The traditional handlooms are being replaced by powerlooms, shuttleless looms and automatic machines to cater to the burgeoning overseas demand. About a decade ago, around 90 per cent of the total handlooms in the country were in Panipat.

There were about 40,000 handlooms operating in the district, providing employment to about 50,000 people. But, at present, only 12,000 to 15,000 handlooms are functioning.

Availing of the benefits of the Technology Upgradation Fund Scheme (TUFS) in the last two years, a majority of the entrepreneurs have modernised their production system by installing powerlooms, shuttleless looms and automatic machines in place of the traditional handlooms to keep up to the latest trends, changing fashions and styles.

As a result, about 22,000 powerlooms, set up with an investment of more than Rs 120 crore, are functioning in Panipat district.

Initially, there were fears that the phase-out of handlooms would render many jobless. But, the installation of pit looms and powerlooms have provided ample opportunities to labourers.

"Modernisation is the need of the hour and we need to tap the export market, where there is a big potential. Our presence in the global market will enable us to compete with China and also change in tune with the latest trends. We were forced to modernise ourselves. Otherwise, we would stand nowhere in the overseas market, said," Ram Niwas Gupta, a local industrialist.

Over the years, Panipat has established its name in the international market. There are about 65 companies exporting a wide range of products such as mats, table covers, bedsheets, curtain and carpet to the USA, France, Canada, Japan, Spain, Germany and Australia.

In 2005-06, the district exported goods worth Rs 2,200 crore compared with Rs 2,000 crore exports in 2004-05 and Rs 1,600 crore a year earlier. The export figures for 2006-07 are still awaited.

With the trade flourishing, new units are coming up in the district. In 2005-06, the district attracted 43 new units in powerloom and shuttleless loom segments, with a majority of them engaged in the manufacture of home furnishings, bed covers and table mats, with an investment of about Rs 6 crore. The number of units in 2006-07 almost doubled, with 82 new units setting shop.

The district is currently turning out new products such as shoddy and acrylic blankets, tapestry, upholstery, art silk, polyester, acrylic, polypropylene and shoddy yarns. A majority of the weavers are migrants from Uttar Pradesh, Bihar and West Bengal. There are some local weavers also, who come from neighbouring villages to work in handloom and pit loom units.

There is an ample opportunity for exporters to have a major share of the export market, where the demand is growing by the day.

However, the 4 per cent VAT on yarn is one of the main obstacles to exports, making the product dearer in the overseas markets. Local industrialists urge that the tax should be lowered, if the government wants them to compete with China and excel in the exports market.