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Tuesday, July 6, 1999

West Bengal cotton textile industry in dire straits 

Kumar Dubey  
Calcutta, July 5: The once thriving cotton textile industry of West Bengal is in dire straits in the land of its birth.

Though the first cotton textile mill was established in West Bengal after independence, the industry is now virtually on the verge of extinction in the state owing to faulty policies of the state government and the misconceived notion that power looms will harm the interest of the weavers.

The state was never a cotton producing area, but the first mill was started here because of the port facility and the availability of market. Bengal continues to be the third largest consuming centre.

The gravity of the problem could be ascertained from the fact that state admits that industrial relation scenario in cotton textile mills in the state cannot be said to be satisfactory and despite that nothing mentionable was done to improve the situation.

Out of the 65 mills in the eastern region, West Bengal has 37 mills -- 19 under private sector and 18 under public sector. Out of the 19 mills inprivate sector, only four mills are functioning at present.

Consequently, only six mills out of 65 are surviving and that too because they are divisions of multi-unit companies like Jayshree Textile or Eastern Spinning and Weaving Mills. The industry, which once provided direct employment to about 1.25 people is now employing less than 10,000 workers.

Eastern India Textile Mills Association president GL Moondra said the considerable deterioration in the industrial relation scenario during the latter part of the 70s have forced promoters, managers and technicians to run away from the state as a result of which many mills were forced to down their shutters.

He said while in other states new mills were started in rural areas and were permitted to pay lower wages overtly or covertly, in West Bengal, the wages for mills irrespective of locations were maintained at equal level and this was one of the major reasons for the downfall of the industry.

The other reason, Moondra felt was the development ofpower-looms.It was deliberately stalled in the state under the misconceived notion that the looms will harm the interests of the handloom weavers and so the spinning did not not find any market here and producers had to sell yarns in distant markets.

He further said most of the new capacity in textile industry in the state was established in spinning sector only while the weaving of cloth was subsequently transferred to power-loom sector to encourage small entrepreneurs and to decentralise the control of the industry.

The state government, however, had different argument for the present situation.

In an industrial scenario paper released recently, it said out of the 18 mills in the public sector, 12 belonged to National Textile Corporation and they were in bad shape.

Even a suggestion by the centre to the state government to consider taking over the NTC mills has failed to bring in anything positive so far. The state government has urged the centre to arrange for funds for modernisation and workingcapital of these units, but nothing has materialised till now.

Meanwhile, the central trade unions and federation of textile workers have submitted fresh charter of demands of the workmen on expiry of the last industrywise tripartite settlement. While East India Textile Mills association, an association of the employers on behalf of their member mills have also issued notice intending to give effect to certain changes in the conditions of service of the workmen which was pending before the government.

Chamber of textile trade and industry member Aroon Kumar Mohta said West Bengal is the third biggest consumer centre of textile goods and despite that the activity of manufacturing is minimum.

The position in Bengal is now such that if yarn is manufactured here, it goes to other states for finishing, as there is no such facility in the state, and from there the finished goods come here again which finds almost a ready market, he said.

It is not that we in West Bengal cannot set up state-of-the-art mills,but lack of infrastruture is the cardinal problem in the current situation, Mohta said adding you cannot expect us to invest for modern mills with latest facilities if there is no road, communication and other infrastructure.

Citing the example of Surat, Bhilwara and Tanda, where textile industry has developed significantly over the last 15 years because of proper infrastructure provided by respective state governments for setting up textile units, he said the situation is West Bengal is ridiculous. The government thinks that entrepreneurs should identify and purchase the land first and then it will make arrangement for its development and provide other facilities while entrepreneurs think otherwise.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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