The slowdown in the European and US markets has led to a contraction in demand for home furnishing items, thus forcing the handloom industry in Panipat pass through a rough phase of business.
Prem Vijh, president, Panipat Exporters’ Association, says the industry has witnessed a contraction of about 15-20 per cent in demand for home furnishing items from buyers overseas, this year.
Having felt the ripple effects of the slowdown in the global markets, Vijh claims it would be difficult for the handloom exporters of the region to touch the Rs 3,000 cr business this year.
The US and European nations, according to exporters, account for about 70 per cent of the exports. Hence, any slowdown in the US and European markets significantly impacts the home furnishing industry back in Panipat.
The handloom units in the region are engaged in the production of durries, mats, table covers, bed sheets, curtains, carpets and other home furnishing items.
Mohit Batra, a handloom exporter in Panipat, says with the global economic downslide, inventories are piling up.
V K Batra, who runs a consultancy business in Panipat, and is also advisor to some handloom exporters says, “since last few years, growth in the home furnishing exports segment has almost stagnated.”
This observations on ‘stagnation’ made by Batra appears true considering the fact that handloom exports, which rose from Rs 680 crores in 1999-2000 to Rs 3,000 crore in 2007-08, has in last few years hovered around the Rs 3,000 mark.
The exporters fear this year the exports figure could remain below the Rs 3,000cr mark.
Batra adds with around 250 handloom exporters in Panipat, just 20 per cent exporters registered export share of more than 60 per cent The rest of the handloom exporters, claims Batra, are small players. With not much growth happening in the export markets since last few years, it has now resulted in small exporters concentrating more the towards domestic market. The big-pocket exporters, however, are still looking at overseas markets to meet the existing demands.
Mohit Batra says with demand stagnating from major countries in Europe and US, exporters are also trying to build up new markets, with Latin America and Africa being eyed being seen as probable avenues.
