Pan-India strike by truckers over six days hits the textile sector hard

The movements of all goods have stopped and shipments are delayed, in addition to exporters' monetary loss, the experts say.

The pan-India strike by truckers over six days has hit the textile sector hard, halting the movement of raw materials and finished products not only for stockists and retailers but also for exporters.

Normally, mills stock raw material for at least a month of consumption but do not hold their finished products, barring some in unavoidable circumstances. 

Spinning mills face no problem in cotton procurement but their yarn's transport to textile mills for fabric manufacturing has been halted completely.

“The strike has hit production, fund flow, employment and the reputation of domestic suppliers and exporters,” says Sanjay Jain, managing director of TT Ltd and chairman of the Confederation of Indian Textile Industry.

“The movements of all goods have stopped. The delay in shipment is, in addition to exporters’ monetary loss, causing damage to India’s credibility in overseas markets,” said Ujwal Lahoti, executive chairman of Lahoti Overseas and chairman of The Cotton Textiles Export Promotion Council.

As many units work hand to mouth and are now getting no material, there is a real prospect of loss of livelihood for casual workers. Even regular ones would have to do with lower wages, in the absence of production incentives and overtime.

Atul Ganatra, president, Cotton Association of India, adds: “Ginning factories are on the verse of closing because of the lack of raw material. Traders are not able to move sold cotton and all payments are stuck due to non-movement of yarn.”

Jain has urged the government to intervene for early resolution. “The delay in shipments would lead to expiry of Letters of Credit, surge in shipment costs and cancellation of orders, in addition to loss of reputation with foreign buyers,” he urged.