Don’t miss the latest developments in business and finance.

Weavers told to cut excess production

Image
Our Regional Bureau Surat
Last Updated : Mar 18 2013 | 4:48 PM IST
Representatives of the textile industry in Surat have suggested checking overproduction to revive the struggling sector.
 
The representatives met at the Southern Gujarat Chamber of Commerce and Industry on Friday to discuss various means to revive the industry.
 
Surat Art Silk Cloth Manufacturers' Association president Arun Jariwala said, "Overproduction is hurting the weaving industry. There is a lot more production than the demand. The problem has to be sorted out. We have suggested steps such as voluntary closure and implementation of shift system."
 
The issue of vanishing textile firms also figured in the meet.
 
Jariwala said, "Numerous firms have vanished in the recent months after duping local traders and weavers to the tune of crores of rupees. These instances cannot be stopped completely, but can be curbed. For this, we have suggested preparing a database or directory. The directory will have all relevant details about textile traders."
 
A major problem that is hurting the local weaving industry is high electricity tariff. While Maharashtra provides electricity to the weaving industry at the rate of Re 1 per unit, local weavers pay Rs 4.50 to Rs 5 per unit. The industry is, however, not too keen on seeking any short-term relief from the government.
 
Jariwala said "There is a vast difference between electricity tariffs for the weaving industry in Gujarat and Maharashtra. Getting short-term subsidy from the government will not end our woes and we are more interested in finding a lasting solution to the issue."
 
"One way of solving the problem is to set up gas-based power plants in areas with high concentration of industries. Gujarat Gas Company Ltd has shown willingness to set up such a plant in the Udhna-Pandesara belt. The company has even prepared a report for the project. We plan to initiate talks with Gujarat Gas in this regard."
 
Another important suggestion towards reviving the weaving industry was to develop clusters or groups.
 
"Yarn prices keep fluctuating. A single weaver does not have much bargaining power, but if a few weavers join hands and form groups or clusters of 20 to 25, they can get much better prices. This will be beneficial for the entire group," said Jariwala.
 
The participants also expressed views that expansion was as an important tool for progress of weaving industry.
 
Jariwala said, "There is a huge potential of business for the weaving and trading industry in foreign markets. We should become more quality conscious, concentrate on value addition such as jari work and embroidery and look for larger volumes instead of higher profit margins."
 
The local industry will seek help from the Synthetic Textiles Export Promotion Council, the city-based Man-made Textiles Research Association (Mantra) and the National Institute of Fashion Technology (NIFT) in this regard.
 
"The council can help industries get a footing in foreign markets," said Jariwala.

 
 

Also Read

First Published: Jun 07 2004 | 12:00 AM IST

Next Story