Tex­tile mills in Su­rat re­port 40% de­cline in fin­ished fab­ric man­u­fac­tur­ing

Apparel Online - - Tex-File -

Slug­gish mar­ket and money cri­sis have re­port­edly re­sulted in at least 40 per cent de­cline in the pro­duc­tion of fin­ished fab­rics at tex­tile pro­cess­ing units in the In­dian tex­tile hub, Su­rat. The de­cline in pro­duc­tion has been ma­jorly re­ported in the last fort­night. “A se­ri­ous short­age of cash ro­ta­tion in the mar­ket has led to this grim­ing sit­u­a­tion,” South Gu­jarat Tex­tile Pro­ces­sors’ As­so­ci­a­tion (SGTPA) Pres­i­dent Jitu Vakharia was quoted as say­ing by Times of In­dia.

No­tably, the neg­a­tive im­pact of GST has hit the sec­tor the most. Since the im­ple­men­ta­tion of the new tax­a­tion sys­tem, the in­dus­try has re­ported a 30 per cent hike in the cost of raw ma­te­ri­als needed for the pro­cess­ing of grey fab­rics. In ad­di­tion to the price rise of raw ma­te­ri­als, the in­dus­try play­ers were forced to an­nounce the wage hike for tex­tile work­ers on Labour Day. Adding to that, the ab­sence of work­ers (who are on leave due to per­sonal rea­sons) has also im­pacted the pro­duc­tiv­ity. Those work­ing over­time are seek­ing wage hike as they are sup­posed to meet pro­duc­tion tar­gets. The re­ports claim that the se­vere liq­uid­ity due to de­lay in pay­ments of almost 100 days and the de­cline in fab­ric demand have also added to the woes of man­u­fac­tur­ers. The unit own­ers do not have enough cash to pay wages to the work­ers.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.