Handloom made-ups manufacturing units in Karur, a highly export oriented industry which powers the economy of the town, has been severely hit by the COVID pandemic. The units are facing huge losses due to cancellation of orders and deferred payments.
According to industry estimates, the handloom textile units are sitting over stocks worth about ₹500-600 crore as orders were cancelled one after other as the pandemic wreaked havoc from one country to another in Europe and the USA.
About 750 MSME units in the town are involved in manufacturing and export of made-ups such as table cloths, kitchen towels, bed sheets, curtains and other home furnishing products. Annual exports from the town is valued at between ₹3,500 crore – 5,000 crore. The industry employs about 1.50 lakh employees directly and provides indirect employment to an equal number. Importantly, it employs a large number of semi-skilled and unskilled workers..
The pandemic has hit Karur where it hurts the most. “The major part of our exports goes to the USA and European countries such as Italy, Spain and France. Unfortunately these are the countries which are worst hit due to the COVID-19 pandemic,” explains A. Sethu, Chairman, Confederation of Indian Industry, Karur.
