Punjab's textile & garment sector faces labour shortage

The textiles and garment industry of Punjab is facing a severe labour crunch. The boom in construction activities in the region has headed off migrant labourers to the construction sector.

Talking to Business Standard, the chief executive officer of Nahar Industrial Enterprises Ltd (Fabrics Division), S S Aich, said workers from Bihar and Orissa, who used to work in the textile units of the state, had now moved to manufacturing industries and construction projects.

"So, we have turned to less developed areas of Orissa to access labour," he added.

He said the representatives of the human resource department of the company visited those parts of the state and with the help of local agents, arranged to have labourers who could work for them consistently.

Textile has been a traditional industry in Punjab and groups like Vardhman, Nahar, Winsom and Trident have been operating in the state. The large players have resorted to technical upgrade, which resulted in labour substitution.

At the same time, the scale of operations has increased and demand for labour surged. Rs 5,500 crore has been invested in Punjab till now under the Textile Upgrade Fund Scheme, of which Rs 400 crore has been invested in small units.

Many small players, particularly in the garment industry, have expanded scale, leading to augmentation in demand for labour.

The advanced technology may obviate the labour demand but this can be possible in textile units.

The garment industry is labour-intensive. The business capital of Punjab, Ludhiana, houses about 10,000 garment and hosiery units.

The manufacturers are also offering incentives to local female workers in textile units to bridge the gap between demand and supply.

Of late, the industry has revised wages to retain the workforce. The big companies in Punjab are also offering more social security and infrastructure.

In accordance with the present guidelines, the Textile Upgrade Fund will cease to be operative in March next year. But the industry has been pressing hard to keep the Fund going and in that case, there would be a further shortfall in the number of workers.

Till date, about 160 garment-manufacturing units in Punjab have drawn funds from the TUF. The proposals of many of the units are in the process of getting final approvals.