Low purchasing power of people hits hosiery business this year
Despite favourable climatic conditions and forecast of a long winter season this year, the hosiery business in Ludhiana is yet to pick up. Thanks to the global economic slowdown and the inflation owing to which the purchasing power of the people have decreased.punjab Updated: Oct 31, 2013 20:12 IST
Despite favourable climatic conditions and forecast of a long winter season this year, the hosiery business in Ludhiana is yet to pick up. Thanks to the global economic slowdown and the inflation owing to which the purchasing power of the people have decreased.
Experts are predicting a good year for the hosiery industry due to early setting-in of the winters, coupled with festive and wedding season.
“Cocktail of the conditions was best suited this year for hosiery business, but the traders are shying away from taking any kind of risk by indulging in bulk-buying. They don't want to block their money as there is uncertainty because of high inflation and global slowdown,” chairman Knitwear Club Ludhiana Vinod Thapar said.
The supply of winter garments has already begun to states where winter season starts early and those far from city. The wholesale dealers in states like Himachal Pradesh, Jammu and Kashmir, Uttarakhand and north-eastern states have started purchasing the winter garments.
“The lack of money in the market has affected the hosiery business. We are compelled to sell our stocks at lower rates, as we can't stock goods for long,” said Narinder K Miglani, managing director of selection knitters and general secretary of the knitwear club.
The decrease in the price of yarn at a time when the goods are ready for sale too has gone against hosiery manufacturers. “Many shopkeepers and bulk purchasers want to buy products at lowered rates citing the low rates of yarn. But we will have to stick to rates suiting us,” another manufacturers said.
The manufacturers are hoping that the business would pick up after Diwali.