Surat zari units stop production

The zari industry of Surat has gone on a 13-day bandh from Tuesday in view of the rising prices of raw material and declining demand. All other allied units like the tania (wire extrusion), bankda and copper units have also stopped production.

The captains of the industry will meet late on Thursday evening to chalk out the future course of action. Industry sources said the ongoing recession in the zari industry was directly related to the slump in the textile market.

The zari manufactured in Surat is used in the manufacture of bridal and other premium saris in Varanasi and in the textile pockets of south India. The demand for zari in this segment has gone down in the past few years.

On the other hand, the supply of zari has seen an increase with more and more household and cottage units coming up in Surat. "This has resulted in overproduction which has led to a crash in prices", said Shantilal Atmaram Zariwala of N Shantilal & Company, a leading manufacturer of real and imitation zari.

Rough estimates state that the total production of zari in Surat stands at 10,000 kgs per day. "The condition of zari manufacturers and traders has gone from bad to worse," he added.

Moreover, the prices of vital inputs like gold, silver and copper has been on the rise. Shantilal says silver, which was available at Rs 7,800 per kg, has already crossed the Rs 10,650 per kg mark while copper, which was available for Rs 151 per kg, is now available for Rs 202 per kg.

Prices of polyester and cotton yarn have shot up by 15 to 20 per cent. "The situation is such that we cannot even recover our production costs", Shantilal said.

To bring in a semblance of consolidation in the market, the Surat Varanasi Zari Merchants Association has given the call for stopping production till March 20.

While the call has evoked good response, with over 5,000 units located in the old city area participating in the strike. "In all, 9,000 units have stopped production," said Vijaybhai Zariwala, general secretary of the Surat Varanasi Zari Merchants Association.

However, small and cottage units located in the peripheral areas of the city (like Udhna and Puna) are reportedly continuing production.

The stop in zari production has also not gone down well with workers in these units. They will be the worst hit as most of them are on daily wages.