‘In absence of labour, we can resume factory operations in limited way'

The Tribune interview

Anil Datt

Ludhiana, June 8

Vikas Bandha, owner of Bandha Knitwears, a hosiery unit, is a worried man. He raised concern that the impact of lockdown on the hosiery industry would be felt for long time, even after it is lifted completely. With the exodus of labour, shortage of funds and in absence of any special package, the industry will witness the worst phase in the near future.

Every year, hosiery unit owners hold a fair in the month of July wherein buyers from across the country visit and place orders worth crores of rupees. These buyers also pay some money as advance that helps local manufacturers in starting their production. However, the Covid-19 pandemic has changed the whole scenario. There seems to be no letup for at least this season.

What is the impact of lockdown on textile industry?

Ludhiana caters to major domestic and international demand for woollen items, and for its dominance in the textile industry, it is dubbed as the Manchester of India. Around 70 per cent of labour, employed with the hosiery industry, comes from other states. The industrial activities in all sectors remained suspended for 68 days due to the Covid-induced lockdown which caused huge losses and the hosiery industry is no exception. We were to face the fixed expenses such as salaries and electricity bills. The orders were cancelled, stocks piled up while payments were withheld, resulting in the whole chain coming to a naught.

How are you tackling issues related to labour?

During the lockdown period, we paid salaries, provided ration and accommodation on the factory premises to labour so that they did not feel homesick and leave for their native places. We even used our savings to pay and feed them. However, when the lockdown restrictions were eased out, the labour made a beeline to return to their natives. Just 10 per cent of labour was left which made it very difficult for us to resume the production properly. We are trying to contact the labour and convince them to return to their workplace.

What will be challenges after lockdown ends completely?

There are many challenges to restart work at hosiery units properly. In the absence of labour, we can restart operations in a limited way. For example, yarn, knitting, cutting, pressing (ironing), finishing, checking and packaging form the chain of proper production and supply. However, even a single missing step disturbs the whole system. It is possible to resume the operations properly only when the workers return to work. This is not going to be easy in the coming days as sudden spike in Covid-19 cases across the country has panicked everyone. I see a gloomy picture for the industry after the lockdown ends.

What should be done to overcome present situation?

The industrial sector has incurred huge losses due to Covid-19 crisis. The state government and Centre should announce some relief package, otherwise more than half of the units will be closed down for the want of liquidity. Banks and financial institutions should be directed to waive off interest on cash credit limits and other loans for a minimum period of six months to help the industrialists tide over the financial crunch. It is big challenge for the industrialists to bring back the labourers, and to tackle this problem, the government should announce labour-friendly plans to ensure their return to places where they were working prior to the spread of pandemic.