“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.