For home furnishing industry in Panipat, the memoirs of 2008-09 are once again back to haunt them as export figures for the season 2010-11 has shown a massive dip.
Information available from state industry department reflects exports from Panipat for the year 2010-11 stood at Rs 2800 crore as against Rs 3350 in the corresponding period for the season 2009-10. Despite exporters in Panipat managing to gain orders from clients in European and South American Countries the business suffered on account of volatility observed in cotton prices last year
Around 2,000 handloom units in the medium and small sector are actively engaged in manufacturing products like durries, mats, table covers, bed sheets, curtains and carpets and other home furnishing items.
The state industries department’s records show that handloom exports from Panipat which rose from Rs 680 crores in 1999-2000 to Rs 3,000 crore in 2007-08 came down to Rs 2860 in 2009-10, due the slowdown in the global economy.
Prem Vij, President, Panipat Exporters association maintained the steep hike in cotton prices created a peculiar situation for the exporters who found themselves at receiving ends as they were unable to re-negotiate the prices. As cotton prices rose home furnishers found it difficult to fulfil the order at the pre-agreed price as result of which business was lost. Many of their clients preferred to substitute cotton products with other products like polyester as result of which the exporters faced losses.
Had cotton prices remain low the exports definitely would have ended on higher note.
Earlier devaluation in Euro prices last year also had come as major setback for the handloom exporters .
Because of the slowdown in US markets in 2008 majority of exports from the region shifted their focus to European countries. Export of handloom products from Panipat to Europe market is estimated to be 30%. Handloom exporters from Panipat had n maintained they had been adversely impacted in wake of price of euro going down which also impacted the profit margins for the exporters.
