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Surat's jari manufacturers have decided to cut down production by 50% due to a sudden drop in demand from south Indian states where production of silk saris have been discontinued.
Around 3 lakh kg jari is manufactured per month in the city and sent to different parts of the country. Jari is widely used for creating designs on silk saris.
The decision to cut down production was taken unanimously by the Surat Jari Manufacturers Association (SJMA) on Friday.
An urgent meeting of the association's members was called as payments of many have got stuck due to soaring silk prices.
Production of silk saris was discontinued due to a steep rise in the price of silk which rose by Rs 3,500 per kg in the past few weeks.
"Due to recent heavy rains in parts of south India where the Malbari Silk is produced, the production has been impacted. Shortage of pure silk has resulted in the prices skyrocketing," said Bipin Jariwala, secretary of SJMA.
"If we stop production completely for two months, we will still have enough stock. Payment of lakhs of rupees is stuck with silk sari weavers. Hence, we have decided to reduce production to cut down on losses," said Jariwala. Association claimed that they did not stop production since it is a source of employment for thousands.