Call Of The Hour

Over the last 10 years or so, the dyestuff industry has seen growth like never before. And ironically, it is also precisely the time period during which it has turned from a being a potential winner that provided forex and employment to that of a polluter. The problem of environment has always been there, though it was being overlooked by the industry as well the government authorities, who have been mere bystanders. Only now, the problem has aggravated and has started to take a toll on the industry.

The drastic, though delayed action taken by the Gujarat government ordering closure of a number of dye producers has taken its toll on exports from the industry. Exports, which has been growing at a rate of 8 per cet to 10 per cent over the last decade, has for the first time declined in 1995-96. Shutting down of units in Gujarat, which are a major contributor to the industry, have been cited as the reason for poor export performance. Whether the forex ear-ned has been more valuable than the permanent damage to environment is yet to be deduced.

The ban imposed on some manufacturers has brought to the notice of the general public about the hazards associated with the industry. This has caused a sharp decline in the number of companies approaching the market. Till January 1996, the number of dye manufacturing companies tapping the market every month was around 10, this has come down to almost zero, with a stray company, specially from Madhya Pradesh, approaching the market. Indu-stry sources say that, number of Letter of Intents issued has also come down considerably.

There has been a marked reduction in the production from the small-scale sector. This is going to benefit players in the organised sector, who will have to take over production of the SSIs to meet the downstream industries