India is the world’s second-largest producer of silk and a significant contributor to this produce is the state of Karnataka. This southern state has more than a million people who make a living out of this industry.
Among the various stakeholders, reelers play a very crucial role and form a vital link in the silk supply chain.
They create beautiful yarns from cocoons that can be used to weave fabrics. This seemingly straight forward task is in reality a series of complex processes that come with their own challenges and impediments.
ReshaMandi has perceived the problems affecting the reelers and is giving them ample support to overcome them.
Reelers work meticulously to spin high quality yarns. Scientifically graded cocoons are of utmost importance to the reelers as they ultimately dictate the quality of yarns produced.
India’s yarn manufacturing industry is negatively impacted by several factors, some of which are:
- Market price unpredictability – The reeling industry is unable to buffer against the shocks of cocoon price fluctuations.
- Cocoon prices constitute nearly 90% of the yarn cost. With negligible value addition, reelers do not enjoy sufficient economic profits.
- The Indian reeling sector operates on narrow profit margins.
- Limited credit flow affects purchase of cocoons
- Dumping of low-quality imported raw silk in the markets and low-quality produce has also made matters worse for the reelers.
- Due to the demand-supply imbalance at times, the farmer (supply side) and weavers (demand side) have an upper hand and the reelers are at the behest of these stakeholders
ReshaMandi, reelers trusted partner
ReshaMandi has been working closely with the stakeholders of the silk supply chain and one of the significant steps that we took for reelers is to open Asia’s second-largest mandi in Ramanagara. This reeling hub is home to a large fleet of reelers. From resolving issues related to cocoon procurement and providing financial solutions for their business, ReshaMandi has touched upon every aspect of their lives.
A few of the benefits extended to reelers are as follows:
- ReshaMandi offers scientifically graded cocoons to the silk yarn manufacturers
- Through the ReshaMandi app, reelers can book slots to buy cocoons from the local sales centres
- Reelers can sell the yarn they have manufactured to ReshaMandi at the best prices
- Reelers can avail of credit assistance to grow their business
Everyday, ReshaMandi’s Ramanagara procurement centre receives fresh cocoon lots and is bustling with activity during the active trading hours. The centre is equipped with a Renditta testing and cocoon sorting unit. At a time when reelers end up spending huge sums on raw material procurement, access to scientifically graded cocoons is a vital aspect of their business. Reelers across town, visit ReshaMandi sales centre to buy cocoons.
ReshaMandi is helping the reelers to spin right
Equipped with good-quality raw materials, reelers are able to spin superior yarn.
Dadaphir, who operates a multi-end reeling unit in Ramanagara, has been into the business of yarn manufacturing for the past 20 years. He is associated with ReshaMandi from the time of its inception. As he is able to access good quality cocoons from ReshaMandi sales centre, he buys about 500 kilos of cocoons everyday. He manufactures around 1200 kgs of yarn every month.
Another reeler, Azam Khan, manufactures about 200 kgs of yarn per day. He is a frequent visitor to ReshaMandi sales centre. He acknowledges the advantages of buying cocoons from ReshaMandi as the entire process is smooth and simple. He also mentioned that the ReshaMandi app gives good visibility of all the details pertaining to the cocoon lots and he is able to make informed decisions. Additionally, whenever he has faced cash flow issues, there was timely credit assistance from ReshaMudra – the fintech arm of ReshaMandi, to help him maintain continuity of business.
By equipping reelers with tech-enabled solutions through the ReshaMandi app, hassle-free procurement of cocoons at fair prices, personalised financing solutions and competitive prices for their products, ReshaMandi has changed the way the traditional reeling sector functions. It has empowered them in every aspect of their business, by adding an edge to their income profiles and has transformed them into successful entrepreneurs.