Olympics brings down spirit of textile units in Bhiwandi

18 Aug '08

3 min read

Nearly 60 textile units in Bhiwandi are finding difficulty in their regular operations, thanks to Beijing Olympics that has put work on halt in China. There is shortage of dyes and chemicals in textile industries in Bhiwandi as they mainly source raw material from China.

Within short span of three months the cost of dyes and chemicals has increased more than 200 to 300 percent. This unavailability of raw material has increased the price of dyes and chemicals adding to the rising cost of production.

In order to seek more information regarding the current situation Fibre2fashion contacted Mr Arun Doshi, Chairman, Direct and Indirect taxes sub-committee, Federation of Associations of Maharashtra (FAM), who asserted, “Since last 6 months textile units in Bhiwandi are facing several problems. Due to Olympics, Chinese dyes and intermediates industries have closed down their factories.

"The rise in price of crude oil along with high coal prices, essential for boilers, have left the industrialists helpless. To add more woes, increased inflation, shortage of electricity and water which needs to be purified has pushed up the manufacturing costs.

Mr Doshi further elaborated on the point and said, “We have come to know that from August 19 China will start taking order but there are chances that the prices will be high and are expected to stabilize by the end of November or first week of December.”

When questioned about the measures that are being taken to bring the situation back to normal, Mr Arun divulged, “As textile industry is labour intensive and export oriented, the association is trying to bring these problems in to the notice of Government.

“The authorities can ask for coal train which may provide coal of A grade on subsidized rates and do something in order to break monopoly of coal dealers which is a matter of great concern. The Government should even start importing coal and provide it to the industry along with supply of clean water.”

The prices of coal have been increasing by Rs100 to Rs200 a ton every month since the beginning of the year. In July, coal prices were risen almost Rs200 a ton. The textiles processing units consumes a minimum of 700 to 800 ton of coal per month to produce steam, which is one of the major inputs of the industry.

Almost 800 to 1,000 workers are associated with the textile industry of the region. Bhiwandi is one of the largest fabric producing centers and provides employment to nearly two lakh weavers and workers. If the situation is not controlled the economy of the region will get severely affected.

Fibre2fashion News Desk - India

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