The ongoing Russia-Ukraine war may affect India’s handloom and textile hub Panipat leading to a drop in demand for handlooms from the city. Currently, Panipat industrialists have orders worth Rs 4,500 crore from many European countries and Russia. The war may increase raw material costs, says Sanjeev Manchanda, President, Panipat Dyes and Chemical Traders’ Association. He urged the government to provide some relief on shipment charges and import duties.

Pritam Singh Sachdeva, President, Panipat Industrial Association adds, continuation of the war for a few more days may halt production in the city. The increase in raw material prices will make it difficult for industrialists to deliver pending orders on old prices, adds Manish Garg, Dream Collections, Panipat. Increase in crude oil prices will also affect trade and transportation, he adds. Local trader Bhim Rama adds, the sanctions imposed on Russia will also increase prices of petroleum products and chemicals causing loss to the dyeing industry. As per figures, Panipat exports handlooms worth Rs 12,000 annually from 10,000 small and large handloom units. Around 80% of these exports are directed to European countries.

After Bhadohi, Panipat is the second largest manufacturer of carpets in country. The carpet exporters here have to compete with Turkey and China.