Apparel Online India Magazine June 1st Issue 2018 | Page 26
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Textile mills in Surat report 40% decline in
finished fabric manufacturing
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.
Textile Ministry holds meet for smooth
execution of its new scheme
To apprise the industry
stakeholders on the guidelines
and significance of the recently
launched scheme – ‘Samarth’, a
meeting was organised in New
Delhi. This is a Government
inititative to skill the youth of
the country and make them
employable in the textile industry.
In the meeting, Union Minister
of Textile Smriti Irani, Minister
of State for Textiles Ajay Tamta
and Secretary, Textiles Anant
Kumar Singh explained the
industry players about the pros
of the scheme and addressed
their issues as well.
Senior executives of Textile
Ministry, representatives of
textile industry and State
Governments’ officials, along
with top brass of institutions
and organisations under the
Ministry, attended the meet.
26 Apparel Online India | JUNE