The vital winter market of Kashmir is slipping away from Ludhiana, the hosiery capital of Punjab. Manufacturers report a severe downturn, with business shrinking by a staggering 30-40% in recent years. This crisis is fueled by a flood of inexpensive Chinese garments and fabrics that are reshaping consumer preferences in the northern region.
A Perfect Storm of Challenges
Industry leaders point to a combination of factors crippling their trade with Kashmir. The lingering shock of India's 2016 demonetisation policy marked the beginning of the slide. This was swiftly followed by the relentless rise of lower-priced Chinese imports, which now dominate the market. Compounding these issues are soaring local input costs for yarn, power, and labour, squeezing already thin margins.
D K Arora, a local hosiery maker, confirmed that the decline started post-demonetization and accelerated with Chinese competition. "The trade has been low since demonetization, and the China factor is one of the big reasons for making a dent," Arora stated. He explained that Chinese fabric is not only cheaper but also made from different, often lighter materials that are attracting buyers away from traditional Ludhiana products.
Chinese Dominance Reshapes Winter Wardrobes
For decades, Kashmir served as a key winter outlet for Ludhiana's knitted goods like sweaters and thermals. However, demand has withered as Kashmiri wholesalers and retailers increasingly stock cheaper, polyester-like alternatives from China. These imports are lighter and often more appealing in terms of variety and price point.
Simarjeet Singh, another manufacturer supplying Jammu and Kashmir, echoed the concern. "Kashmiris are wearing Chinese garments more and more," he said. "As of now, the imports are taking the market share from Ludhiana." The situation is so dire that Vinod Thapar, chairman of the Knitwear Club, warned that Chinese fabrics and accessories now command a shocking 98% of the market, dooming local accessory makers as well.
An Uneven Playing Field
Manufacturers argue they are fighting with one hand tied behind their back. While Indian firms must shoulder domestic taxes, stringent labour laws, and various regulations, cheap imports flood the market without such constraints. This creates an uneven playing field where local producers cannot compete on price.
Sanjiv Garg summed up the bleak reality bluntly: "Demand has gone down, costs have gone up." This simple statement captures the severe profit squeeze threatening the survival of many units in Ludhiana's iconic industry.
A Plea for Government Intervention
Faced with an existential threat, the industry is raising a collective voice, calling on the government for urgent relief. Their demands are clear:
- Tighter curbs on imports to check the unchecked inflow.
- Stricter enforcement of quality standards on imported goods.
- Policies that favour and promote locally manufactured products.
"The govt needs to intervene," urged one manufacturer. "If imports are not regulated, the local hosiery industry will continue to suffer." The message from Punjab's industrial heartland is clear: without protective measures, the fabric of Ludhiana's economy risks unraveling further.
