Industry contraction strains manufacturers and supply chains
Panipat's long-established blanket manufacturing cluster is confronting a sharp drop in domestic demand this season alongside rising input costs, producers and trade representatives said. The sector, known for mink, flano and polar blankets and comprising roughly 160 manufacturing units, reported production falls of about 30–35% and a nearly 50% contraction in domestic sales.
Industry leaders attributed the downturn to a combination of factors: a surge in polyester yarn prices following global crude oil movements, inflation weakening consumer purchasing power, delayed payments, higher costs of dyes and labour, and unfavourable weather reducing cold-season sales.
“Usually, this is the peak season for the blanket industry, but production is down by around 30% and domestic demand has shrunk by nearly 50%,” said Naveen Bansal, president of the Bapoli Industrial Zone and a founder member of the All India Industries Association.
Trade representatives emphasised that the cluster supplies almost the entire domestic market. The scale of the impact is therefore likely to ripple across distributors, stockists and small retailers who rely on predictable pricing and timely payments.
Costs climb as yarn prices surge
Producers said polyester yarn, a principal raw material, has become substantially more expensive. Yarn that was available at about ₹100–105 per kg last year is now priced at around ₹155 per kg, pushing manufacturing costs and retail prices higher. That increase has made stockists cautious about building inventory and has dampened bargain-driven seasonal sales.
| Indicator | Reported change |
|---|---|
| Production | Down 30–35% |
| Domestic demand | Nearly 50% decline |
| Yarn price (last year → now) | ₹100–105/kg → ~₹155/kg |
| Number of units | ~160 |
Sales channels under strain
According to Ram Pratap Gupta, secretary of the Panipat Polar Blanket Association and vice-president of the Haryana Chamber of Commerce and Industries, Panipat Chapter, the industry depends on four main sales channels: stockists, the marriage season, festivals and cold weather. Those channels have been weakened by uncertainty over input prices and by subdued consumer demand.
- Stockists are reluctant to hold large inventories given volatile yarn prices.
- Marriage-season purchases and festival demand have been weaker than usual.
- Adverse weather has further reduced demand for winter blankets.
“Uncertainty over yarn prices had made stockists cautious, while weak marriage-season sales and rising costs of dyes, labour and other raw materials had hit business,” said Ram Pratap Gupta.
Trade leaders also flagged disruptions in cash flow. Manufacturers who previously received payments within 35–40 days are now reporting waits of nearly two months, increasing working-capital pressures for small and medium enterprises in and around Panipat.
Local consequences and wider exposure
Vinod Dhamija, chairman of the Haryana Chamber of Commerce and Industries, Panipat Chapter, highlighted that the cluster is encountering simultaneous pressure from domestic weakness and slower overseas orders. While the industry had earlier improved its standing against Chinese imports, sustained cost inflation and tighter order books threaten margins and employment.
For Panipat, where blanket manufacturing is a key livelihood for many households and ancillary businesses (dyeing units, transporters, small traders), the present slump poses risks to employment stability and credit cycles. If the season continues to underperform, smaller units may face difficulty in servicing loans, renewing inventories and retaining labour.
Industry representatives said they will monitor yarn-price movements and buyer behaviour closely over the coming weeks, and are seeking measures to ease working-capital stress and stabilise supply-chain terms.
