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Surat embroidery industry dwindles

31
Dec '08

Surat, distinctly known for diamonds and textiles, has been able to carve a niche in the embroidery industry as well during the past few years. However, the sector is shrinking day by day on the back of global meltdown.

Handmade as well as computerized embroidery work from Surat has been attracting thousands of international shoppers to this town.

Current global scenario has put an adverse effect on the embroidery industry of this region as well. In the last three months, production has dropped down by more than 35 percent. Of late more than 35,000 labourers have already been laid off from this sector.

In Surat, there are around 50,000 embroidery machine units and around 1,00,000 embroidery skilled workers are working in shifts. As orders have been decreased embroidery companies have stopped night shifts and few have reduced working hours.

“Workers working in night shift are given option to work in day shift and are been adjusted within units. Only in unavoidable circumstance where factories have been closed, the workers have lost their jobs. Job cut are much hyped,” stated Mr Devkishan Manghani, Acting General Secretary of Federation of Surat Textile Traders Association (FOSTTA) to Fibre2fashion.com.

The overall ready fabric industry in India is worth Rs300 billion, while exports contribute about Rs8 billion and embroidery forms a major part of the ready fabric industry. Earlier, the traders used to export embroidered fabrics to countries like the UAE, USA and Great Britain.

Observing this huge potential, enterprises in Surat imported embroidery mahines from China worth Rs0.4 million to Rs10 million. However, most units have not been able to recover the invested amount, as textile exports fell since October and according to forecast will dip further in the coming fiscal.

In this regard, Mr Haresh Chavatia (Proprietor), Raj Embroidery said, “We have 7 machines for embroidery work. Nearly 100 workers are working in shifts and remaining work we get done through contract. We sell 80 percent embroidered cloth in India and rest we export. As our export ratio is very small, the current recession has not affected us much. Till date we have not reduced our working hours neither we have laid off any worker. But the sad part is that, currently we are not receiving orders from exporters.”

“Exporters are facing difficult time. To sell their ready goods they are now turning to domestic market which is creating problem for us as now there are now eating up our market share. Domestic market demand is already limited for embroidery cloths and now we are sharing it with exporters. This recession will continue for longer period and that is a matter of concern for us,” showing his apprehension Mr Chavatia stated.

The Union Textile Ministry had targeted 20 percent growth in the current fiscal and Embroidery industry that depends on the textiles, is hoping for speedy survival.

Fibre2fashion News Desk - India

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