The Hindu : Tamil Nadu News : Salem Export Zone yet to take off

Online edition of India's National Newspaper
Monday, Apr 18, 2005

Tamil Nadu

Tamil Nadu

Salem Export Zone yet to take off

S. Ramesh

Competition, outdated technology dampening enthusiasm

SALEM: The proposal to set up a high-tech weaving and apparel park in Salem is yet to take off. The enthusiasm among exporters is abating with the cutthroat competition in the post-quota regime.

The exporters are hesitant to make huge investments while the market looks tougher than ever. Though Indian exporters are getting orders they are unable to compete with their counterparts in China in price. Fluctuating yarn price, low productivity, high power tariff and outdated loom technology have left Salem weavers to struggle in the market conditions. "They are uncertain about the market and hence the delay in project. But they are determined to implement it," president of the Salem Exporters Association (SEA) R. Venugopal said.

The project aims to boost exports of the Salem weaving industry. The SEA and other weavers' associations had floated the idea of establishing a weaving and apparel park few years ago.

The project initially received good response from weavers and exporters as it promised, among other advantages, to open new avenues for getting additional orders directly. The association had identified 45 acres to construct 100 sheds for the park near Mallur near here. However exporters stopped showing enthusiasm in the project.

The SEA, nevertheless, is promoting the park in association with the Salem Export Cloth Manufacturers Association, and has initiated efforts to motivate industrialists to join the cluster.

It has organised meetings to highlight the advantages of a weaving park in Salem.

" We are facing difficulties in implementing the project but are determined to implement it," said SEA secretary A. Karthikeyan.

The SEA is also seeking to obtain a brand name (Salem Fabric), for clothes manufactured here. The SEA presented its case to the Geographical Indicators Registry of Union Ministry of Commerce, a few months ago. "We are waiting for a response from the Ministry," Mr. Karthikeyan said.

The Salem fabric industry has nearly two-lakh looms, of which 90 per cent are power looms. The industry employs six-lakh people.

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