Points out Naresh Aggarwal, president, Ambala Durree Manufacturers' Association, "The local manufacturers are likely to face more problems in the coming years as the cost of raw material has skyrocketed due to shortage of cotton production this year in the region."

"Of the total number of 50 looms installed by us, hardly 33 per cent are in use due to lack of business," says Arun Aggarwal of Aggarwal Textiles who started in 1973. Worried about the constant slide in business he says that frequent labour problems are a big headache. "Itis not possible for us to maintain permanent labour in our factory in the present circumstances. We face a very difficult situation when compared to Panipat and Nakodar where entrepreneurs have diversified into handloom and allied products for their survival." Even contract labour is 20 per cent costlier in Ambala compared to Panipat and Nakodar.

The entry of rubber foam mattresses in the domestic market too has adversely affected the durree industry. "These mattresses have cut into our market. There are not enough buyers for durrees now," says Ashok Kumar of Raj Durree Factory.

"The resulting price war has reduced margins to the minimum. We are getting cotton yarn from Delhi, Panipat and Abohar on cash payment but have to offer finished goods on nominal margins on long credit varying from three to six months," says Kumar. Most of the durree manufacturers of Ambala are selling their products in Punjab as the custom of giving beds in dowry exists in the villages even today. "We have toeither diversify or close down," adds Kumar. Several durree manufacturers in Panipat have either switched over to the manufacture of blankets or allied products or have closed down their units. With 15 looms, Kumar's annual turnover at present is between Rs 20 and Rs 25 lakh with the help of contract labour.Though the industry has suffered a major setback in the domestic market the export front too is not encouraging.

Says Naresh Aggarwal, "Indian durree manufacturers are facing a stiff competition from China and Pakistan. We had a good market in the US, but due to political instability, we are not getting sufficient export orders."

Due to the fluctuating price of raw materials it is hard for the exporters to stick to the price of durrees offered by them in the international market. Naresh Aggarwal, with an annual turnover of about Rs 14 crore in direct exports to Australia and Japan, is worried about the drastic fall in business. "We have done business of just Rs 3 crore this yearwhich is not sufficient even to meet our overheads. And to top it all, there are no orders in hand."

Rajiv Kumar of Aashu Handloom started his manufacturing unit in 1986 and at present has a turnover of Rs 25 lakh. He has been doing job work for exporters. "For the last two years, the export market has been in a slump and business has been hit," says Kumar. He feels that the government should support this industry and help exporters by providing financial aid on subsidised rates of interest to keep durree manufacturers going.

Unfortunately, no such help from the government is in sight. On the contrary, inspector raj has become a way of life. "Running an industrial unit has become a curse. We are forced to handle a fleet of inspectors besides maintaining 18 types of registers," says a young entrepreneur. It is a pity that an entrepreneur invests, helps provide employment, earns revenue for the government, works for 18 hours a day and what he gets in the end is just threats. But there are someentrepreneurs in Ambala who have survived the scare and are doing well despite problems. Sham Sunder Mehra, who started his manufacturing unit Hindustan Durree Industry in 1960, is one such businessman. Prior to coming into exports ,Mehra used to supply to the domestic market.

"We started exporting our products through export agencies in 1964-65 and at present cover Britain, France and Italy," says Mehra. He is engaged in making seasonal designs in different colours as per the requirement of customers. Satisfied with his present annual turnover of Rs 7 crore, Mehra says that he is not facing much competition in the export market as the quality of his product is very good. "Foreign buyers are very quality conscious and do not hesitate to pay more for a good quality product".

Mehra feels that setting up of a dye house and a design centre at Ambala on the lines of the one in Panipat could help entrepreneurs come out of the existing problems. However, Naresh Aggarwal disagrees. "There is no necessity of a dyehouse or a design centre at Ambala as there may not be much work on hand," he says.

It appears that most Ambala durree makers see no light at the end of the tunnel. With the situation not expected to improve in the near future, the only option left may be to go in for diversification.