Red resurgence in East hits demand for Surat textiles

The recent surge in Naxal violence in the eastern states is becoming a big worry for Surat, the manufacturing hub of synthetic sarees and dress materials.

The spike in violence has adversely affected demand for Surat textiles in these states, and could also impact orders ahead of Ramzan, Eid and Durga Puja.

Textile industry experts say demand for sarees and dress material in Naxal-hit states such as Chhatisgarh, Jharkhand, Orissa, West Bengal and Bihar has fallen steeply because of the rise in leftwing violence.

“The surge in Naxal violence has had an adverse impact on the demand for sarees and dress material. The demand from eastern states affected by the violence has fallen by 15-20%,” said Rajat Bhatia, a textile trader in Surat.

Traders said that because of the recent attack on trains in West Bengal, the Railways had stopped movement of trains at night in some Naxal-hit areas. “Buyers are not keen to travel because of the surge in violence. Suspension of train movement at night is also affecting arrival of buyers,” a trader said.

Devkishan Manghani, president, Federation of Surat Textile Traders Associations (Fostta), said, “Exports of sarees and dress material to Bangladesh, which are done mostly through Kolkata, have also been affected.”

The impact of Naxal violence on transportation of goods is also worrying traders. Sanjay Sarawagi of Laxmipati Group said the movement of goods by train to certain eastern states has already been adversely affected. “It could worsen if the Naxalites also start targeting roads,” he said.