Ludhiana hosiery seeks aid amid Chinese fabric dumping

Garments made from Chinese fabric cost nearly 10-15 per cent less compared to those using local raw materials.

Even though Ludhiana, considered the heart of India’s garment industry, continues to be an attractive location for hosiery business, it is currently grappling with the adverse effects of increased imports of man-made fibres (MMFs) from countries like China.

According to industry stakeholders, the influx of inexpensive Chinese polyester cloth is negatively impacting local weavers, spinners, knitters, processors, and export manufacturers who struggle to offer competitive prices. The textile Micro, Small & Medium Enterprises (MSMEs) in Ludhiana are labelling this trend as the “dumping” of cheap Chinese fabric.

Industry stakeholders note that garments made from Chinese fabric cost nearly 10-15 per cent less compared to those using local raw materials.

Ludhiana is typically an ideal destination for hosiery industries due to the easy and reliable supply of raw materials and the availability of skilled manpower. Ludhiana’s hosiery sector stands as one of the oldest clusters in the country.

Cheap polyester cloth imports from China and Bangladesh are being falsely labelled as cotton, allowing them to pay only a 5 per cent import duty while evading the 20 per cent duty applicable to such imports. Under normal circumstances, polyester cloth or fabric imports are subject to a 25 per cent import duty.

The key markets for Ludhiana-based hosiery industry include Punjab, Haryana, Delhi, Himachal Pradesh, Uttar Pradesh, Rajasthan, Jammu and Kashmir, Bihar, and some Northeastern states. Ludhiana’s hosiery cluster is renowned for winter garments like jackets, sweaters, thermals, cardigans, pullovers, inners, and shawls, with October, November, and December being critical months for the sector.