Yarn shortage forces closure of 3,000 ribbon-making units

Almost half of the about 6,000 ribbon manufacturing units in Surat are lying closed due to shortage of yarn.

Until a couple of months back, two lakh metre ribbon was produced a day in Surat, but this has come down to below one lakh metre now as most of the units are closed.

Ribbon manufacturers said the main reason behind the closure of the units is yarn shortage.

Leading ribbon manufacturer Chetan Gotawala, said, "The 111 semidel yarn, which is used for manufacturing ribbon, is not available in the market. Yarn shortage was always there, but we somehow managed to keep the units running."

"For the past two months, the problem has gone out of hand and there is hardly any 111 semidel yarn available, not even at higher prices," Gotawala said.

Industry sources said yarn shortage is mainly because leading manufacturers have started supplying yarn to Ludhiana and other cities.

A ribbon manufacturer said, "The 111 semidel yarn is also used for manufacturing socks. There is huge demand for this yarn in Ludhiana and other places in north India, which are the major centres of socks manufacturing. Yarn manufacturers have started concentrating more on these markets, which is leading to shortage in Surat."

Yarn of certain companies is easily available in the local market, but its quality is not up to the mark. A ribbon manufacturer said, "Certain brands of 111 semidel yarn are available, but they are not of good quality. Using this yarn for manufacturing ribbons would lead to financial losses as we cannot sell it at good rates." Though the locally made ribbons are used for various purposes, their main use is in school uniforms. This is one fact that is hurting ribbon manufacturers the most. Another manufacturer said, "This is the peak business season for us, but we have been forced to cut production because of yarn shortage."

At the same time, ribbon manufacturers are confident that this tough phase would not last for a very long time.

"The situation should start improving shortly as we are hopeful that the problem of yarn shortage will be sorted out. Until then, we can just wait," said a manufacturer. Surat is the only centre in the country where these ribbons are manufactured.

The main markets for these ribbons are Hyderabad, Bangalore, Kolkata, certain places in Uttar Pradesh as well as Madhya Pradesh.