Surat textile industry to set up yarn bank

Company Performance

Surat textile industry to set up yarn bank

The Surat-based synthetic textile industry has decided to set up a yarn bank with support from the Ministry of Textiles. K S Rao, the Union Minister of Textiles recently visited the Surat textile industry, along with Sunaina Tomar, Joint Secretary, Ministry of Textiles, and Textile Commissioner A B Joshi, and informed the local manufacturers that he understood the need for setting up a yarn bank.

On this, chairman Arun Jariwala, Chairman of the Federation of Indian Art Silk Weaving Industry (FIASWI) commented, “Yarn bank is particularly useful for small and medium weavers as they shell out more money. Due to lot of price fluctuation, small and medium weavers are not able to get yarn at reasonable prices. Due to raw material shortage and price fluctuations, small weavers cannot do forward selling based on the cost of yarn. So, if there is a yarn bank, then bulk purchases can be done from the producer and later can be given it to the weaver at concessional rates."

Apart from that, the yarn bank will also help to eliminate the yarn brokers. "Brokers take 2% commission and the yarn bank can help to do away with the brokers. This will also help to establish direct contact, at least with the main yarn dealers."

Jariwala believes that yarn imports would also become more organized. A year ago too, the then textiles minister, Anand Sharma, while on a visit to Surat, had supported the idea of a yarn bank, but the project did not move forward. The industry hopes that this time, proactive steps would be taken in this direction.