Bhagalpur silk industry misses opportunity of overcoming slowdown due to escalation of yarn prices

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by Avijit Biswas

Bhagalpur : It is lost opportunity for Bhagalpur silk industry. Despite encouraging supply order this festive season the chances of financial bounce back of industry has been marred.  In fact sharp Increase of yarn price has created a major roadblock in economic revival of local silk industry.

After prolonged slump during pandemic, the members of industry had been looking forward to current festive season for overcoming financial losses they had to incur during pandemic. The current festive season supply demand in no way is less than expected by industry members.

However, sharp Increase of yarn price has created major roadblock in economic revival of silk industry here. Number of silk industry members informed increase of yarn prices is not restricted to ‘tassar’ and other varieties of silk yarn only rather prices of linen, cotton and viscose yarns have also registered increase in recent months.

Fabrics, dress materials and furnishing items made of cotton, linen and viscose is also produced in large quantity in silk industry here apart from those made of different types of silk yarn. So far meeting high supply order of festive season is concerned, price rise of different types of yarn has led to cumulative adverse effect on production of industry.

Alim Ansari, a senior member of “Resham Bunkar Khadi Gramudyog Sangh” told view19.in that as per a rough estimate in current festive season local silk industry has supply order of nearly Rs 350 crore taking together supply demand of fabrics, dress materials including sarees besides furnishing items produced by different type of yarns.

The major portion of total supply order is however for silk saris, suiting and shirting made of tassar yarn, Ansari informed. He said the bag full of supply order with local industry is from domestic market. In case of tassar yarn price has doubled in time period of less than one year, it is proving difficult for weavers to ensure supply at given rate, Ansari informed.

He added compared to Rs 4000 per kilogram price of tassar yarn last year the price of yarn has increased to Rs 8000 per kilogram in current year. Ansari said prior to start of festive season members of industry largely anticipated that prices of tassar yarn would stabilize at lower rate. However there was no relief for weavers, he added.

Ansari informed due to cost escalation of yarn prices industry has been able meet only 20% to 25% supply order so far. He informed tassar yarn demand of industry is around 1500 kilogram per day. Earlier people involved in weaving of silk yarn used to bring cocoons from Jharkhand, Odisha and Chattisgarh, Ansari said. He added they used to supply cocoons to people at local level for purpose of reeling.

Ansari informed states from where people used to bring cocoons earlier have created facility of reeling yarn in their respective states. People running small and medium sized business of supplying tassar yarn to local industry mostly used to bring cocoons from places in Jharkhand, he said.

Ansari informed now that facility of reeling cocoons have been created in nearly 123 places in neighbouring state, the cocoons grown in Jharkhand is purchased in bulk by both government and private agencies for supply to reeling centers.

Ansari said procuring cocoon from neighbouring state has become difficult for yarn producers here who earlier used to bring cocoons in small quantity from Jharkhand. The cumulative effect of problem has led to yarn cost escalation, he added. Ansari said price increase of yarn has led to increase of production cost of tassar sarees.

Because of increased production cost the small and marginal weavers in particular have been hit badly, he informed. Ansari said the average production cost of tassar saris comes around Rs 3000 per sari in case of small and marginal weavers.

He added the small and marginal weavers who are provided yarn for weaving saris by big silk producers normally get Rs 200 above their production cost. In retail market the saris are sold at price between Rs 5500 to Rs 6000 per sari, Ansari informed.

He added the bottom line workers of the industry however are no way benefitted by price tag of the saris in wholesale and retail markets.  Ansari felt profit earning of small and marginal weavers remain low due to the fact they do not have direct access to raw materials. Direct access of raw material to weavers, apart from increasing their profit earnings could have also helped avoiding present situation wherein industry is unable to reap benefit of high demand, he said.

He further said in silk industry here there are more than 12500 handlooms   used mainly for weaving different varieties of tassar yarn. Of the total at present however only around 6500 handlooms are functional Ansari informed adding price rise of yarn is a major reason the handlooms are lying idle in number of cases.  Establishment of cocoon bank here has hardly served any purpose , he added.

Ziaur Rehman, a silk producer of Champanagar area talking with view19.in said problem regarding availability of tassar yarn was discussed at high level meeting of officials held at Patna recently on government plan of promoting one product from each district.

Rehman was among people from this district invited for participation in the meeting. He said in course of discussion on promotion of tassar silk produced in district it was brought to notice of authorities that unavailability of cocoons having direct impact on yarn prices has slowed down tassar silk production here.

Price increase of linen, cotton and viscose yarn has also led to an adverse effect on industry. However price increase of yarns other than tassar has been comparatively less. Compared to last year yarn prices of linen fabrics produced in large scale in local industry, has registered increase of 5% to 11% depending upon count of the yarns, said Ratan Bhalotia, a dealer of linen year.

Obedullah Ansari, a silk producer of Nathnagar area told view19.in that roughly there has been Rs 100 to Rs 150 increase in prices of linen and viscose yarn in period of last one year. Of late there has been some stability in prices of linen and viscose yarn Obedullah informed adding stability in market prices of yarn however has hardly helped silk producers in fulfilling festive season order.

Obedullah who earlier used to produce tassar silk has taken to production of mainly linen fabrics. He said unavailability of cocoons leading to high prices of yarn; the tassar silk producers in number of cases have switched over to production of linen and cotton fabrics.

In Nathnagar area, hub of local silk industry nearly 80% silk producers who mainly used to produce tassar silk earlier have taken to production other fabrics primarily due to high production cost of tassar silk, Obedullah added.

Ebrar Ansari, yet another silk producer of Champanagar area told view19.in that cost escalation of yarns has given jolt to festive season expectations of overcoming slowdown being experienced by industry since pandemic. Escalation of yarn prices has led to increased production cost, it is proving extremely difficult for weavers and silk producers to ensure supply against order at given rate, he added.

The members of industry in many cases feel a comprehensive plan needs to be prepared at government level for improving financial health of local industry. It is largely felt to ensure silk industry here could compete with other silk producing centres of country, at government level there should be consideration on creation of advanced computer aided facilities for design diversification and dyeing apart from establishment of common facility centre.

Though some private parties have started providing services related to computer aided designing and dyeing however for small and marginal weavers who constitute bottom line of industry it is difficult bearing expenses of availing these services, they added.
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