CHANDIGARH: Yarn manufacturers and exporters in Punjab stand to lose orders worth Rs 1,000 crore in the wake of civil unrest and turmoil in Bangladesh, industry insiders said.
Exports from Punjab to Bangladesh per annum is to the tune of Rs 3,120 crore. Of these, 80 percent is yarn. Bicycle parts, machine tool, auto parts and food products are other goods exported from Punjab.
Speaking to TNIE, Amit Thapar, head of the CII Northern Region export committee and proprietor of Ganga Acrowools Limited in Ludhiana noted that Punjab and Gujarat has big stakes in Bangladesh.
He said that exports to the tune of at least Rs 3,120 crore is made from Punjab to Bangladesh in a year. Out of this 80 percent is yarn of which cotton yarn has a huge share. The other major export items include acrylic yarn and wool, cycle parts, machines tools, auto parts and food products.
"Yarn is moved to Bangladesh on trucks. It takes about 4 days to reach, and the product is offloaded in about 8 to 9 days. This is the shortest and fastest means to deliver the consignment to Bangladesh,’’ he said.
There are about 50 agents in India who facilitate the export of yarn to Bangladesh. Of them, 4 to 5 big agents have their offices in Ludhiana. These agents have their offices and staff in Bangladesh also. For some days they were getting feelers about the situation so a few of them called their staff back to India.
Goods worth around Rs 200 to 300 crore are estimated to be held up at the border and orders worth Rs 1,000 crore have been immediately affected (slowed down).
Daily about 450 to 500 trucks from India head to Bangladesh through the Petrapole border, the largest land port in South Asia, and about 150 to 200 trucks come the other way.
"Since Thursday morning movement of trucks has resumed. Let us see. We are in touch with our buyers but the business has slowed down," Amit Thapar said.
Thapar further said: "the big worry now is how the approach of the new government with India is going to be. Imports depend on friendly relations."
According to a leading transporter Bajrang Sharma there was a temporary hurdle on the movement of trucks since Sunday. They were stopped at the border. However, the movement of trucks resumed on Thursday morning.
Sharma is member of the management committee of the All India Motor Transport Congress and owner of Goel Roadways.
Sudershan Jain, president of Knitwear and Apparel Manufacturers Association of Ludhiana said: "While the yarn industry is affected due to the present situation in Bangladesh, there is a blessing in disguise in the form of enquiries pouring from the USA, Middle-East and Panama for export orders of woolen sweaters and T-shirts. Thus it is expected that some garment orders will shift to India from Bangladesh. There are about 15,000 textile units in Ludhiana alone and for last decade we have been suffering losses due to government polices and cheap labor in Bangladesh as their production cost is 15 percent less than us.’’