Synthetic textile units temporarily cut production by 25 per cent.
The ongoing Telangana crisis in Andhra Pradesh seems to have taken its toll on the synthetic textiles makers of Surat in Gujarat as their consignments to this troubled region have come to a standstill. This has forced them to temporarily cut down their production by at least 25 per cent.
The merchant manufacturers (traders) from Surat, who manufacture and supply synthetic sarees and dress materials to Andhra Pradesh, have started receiving cancellation of orders due to ongoing stir. Andhra Pradesh is one of the key markets for the Surat-based synthetic textiles industry with a share of not less than seven per cent of the Indian market.
"At least 30 trucks carrying synthetic textile consignments ply to Andhra Pradesh on a daily basis. The trouble in that state has disrupted the supplies and our trucks are not able to deliver goods to the addressees mainly in Hyderabad and Secunderabad, which are surrounded with the unrest," said Yuvraj Desale, president, Surat Textile Goods Transport Association (STGTA).
The crisis came at a time, when the industry was expecting increased business with festivals including Ramzan and Onam starting from August onwards. "It was a time for us to make a good business due to a possible festive demand. But looking at the extent of turmoil in the Telangana region, we feel that the demand will be badly hit," said a textile trader from Surat.
Further, the industry players see no visible signs of things getting normal in near future. Hence, taking a cue from the media reports and sensing the level of uncertainty, most of the units have decided to temporarily downsize their production by at least 25 per cent.
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"We have no clue when this agitation will be over and situation will come to normal in Telangana region. Therefore, keeping in view the uncertainty and the inventories, most of the manufacturing units have decided to cut down their production by 25 per cent at least for now. If the trouble continues for long, then it would be very difficult for us to sell these goods in other markets as they are specifically made to suite the local taste in Andhra Pradesh," informed Devkishan Mangani, president, Federation of Surat Textile Traders Association (FOSTTA).
According to industry sources, the manufacturing units had created inventories of goods so as to cater to the festive demand. But considering the fact that the same goods would not suite in other markets in India, the manufacturers have started sensing a trouble brewing for themselves. Nearly 1500 units are engaged in the manufacturing of synthetic textiles in Surat. The Surat made Dani and Russian style of sarees are popular in this region, while embroidered dress materials too are high in demand.
The Telangana Joint Action Committee (JAC), which is spearheading the agitation for a separate state, Telangana has already disrupted road and rail transport. JAC has also threatened to intensify the agitation in coming days, which is creating a major threat to the industry.