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Solapur’s terry towel industry braces for Trump tariff, plans global push

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Home to a vibrant handloom and powerloom industry, Solapur sustains nearly 50,000 workers through 12,000 powerlooms, 200 rapier looms, and 200 air jet looms. The city produces chaddars, towels, and napkins with an annual turnover of over ₹1,600 crore, and its terry towels hold a strong presence in the global market.

“Our terry towel designs are unique to Solapur and have global demand. The tariff will certainly hit us, but we are not going to give up,” said Raju Rathi, President of the Solapur Chamber of Commerce Industry and Agriculture.

Terry Towel Exports

In 2024, Solapur exported terry towels worth ₹618 crore, of which about ₹200 crore went to the US. These towels are supplied for use in hotel, medical, and household across more than 60 countries. With the US market under pressure, the industry is now looking to step up exports to Israel, Australia, Sri Lanka, and other destinations, while tapping India’s untapped domestic market.

The industry is also turning its attention to India’s domestic market, eyeing opportunities across states. With terry towels priced from as low as ₹50 per piece, manufacturers are confident of strong demand beyond Maharashtra. The main competition, they acknowledge, will come from Ludhiana-made terry towels.

Workers’ Unions

Interestingly, workers’ unions and industrialists have come together to face the challenge. Union leader Narsayya Adam said the city will stand united, and he will initiate concrete dialogue between workers and industry to safeguard livelihoods and sustain growth.

“All industrialists recently came together to discuss the way forward. We are determined to protect our industry, our business, and most importantly, the livelihoods of thousands of workers,” Rathi said.

 He added, “We are a nation of 140 crore people, and we must be able to overcome such challenges.” In these uncertain times, Solapur is taking decisive steps to withstand the Trump tariff and ensure the industry does not succumb to circumstances.

For Solapur, the Trump tariff is not just a setback—it is a catalyst to diversify, adapt, and emerge stronger on the global stage.

Published on August 28, 2025

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