SURAT UPDATE Synthetic yarn climbing new hights : Prices surge upto Rs. 10/kg.

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The Powerloom machinery owner of Man-Made Fibre(MMF) based industry in Surat are worried about contineous increasing yarn prices since a month. Various deniers of synthetic yarn have reached at new height in every sale. The prices of texurised yarn, FDY has incresed upto Rs. 8-10/kg. during last the month. In December's first sale, yarn manufacturers, spinners has further tighten the prices. They again have raised the prices of POY, PTY and FDY by Rs. 1/kg.

Though the prices are increasing, the momentom of market is weak. Because of weak demand and GST regime the weaving sector has observed three weeks long vacation this year. After Diwali vacation, weaving units are yet not running at full fledged mode. Now, Powerloom weavers are worried about hike in yarn prices and are in wait and watch mode for new orders. Many workers have left the city and have not returned. In some industrial area, the powerloom units are running in one shift only. The daily MMF fabric production in the city has come down to 2 crore meter, decreased by almost 50%.  

Yarn manufacturers are arguing that because of incresing crude oil prices, the raw material PTA, MEG and chips prices also have increased. The production cost of yarn has increased and that is why yarn prices has gone to new heights.

GST procedure will be rationalised : FM Jaitly assured surat traders  

The central government is seriously working on rationalising entire GST procedures. The GST regime has made available a big market for traders of all over the country and now it is necessory to simplify the GST structure. Exectly before two week of Gujarat assembly elections, Union finance minister Arun Jaitley has organised a meet ing with the traders in Surat and assured them to resolve GST concerned issues.

Jaitley spent an hour with the textile industrialist and discussed various GST issues. He refrained from giving any promise but said that government is determined to resolve procedural and technical issues under GST. The meeting was attended by all the key leaders and representatives of powerloom weavers, textile traders and textile processors. Interacting with the textile stakeholders, Jaitley said, "I invite a group of textile industry leaders with collective representation from the industry to New Delhi. Senior tax authorities will be deputed to sort out the procedural issues. The government is working on launching the national E-way bill between January 1, 2018 to March 31,2018. The national e-way bill will allow the traders to send their goods to any part of the country, without any procedural problems."

The leaders of the different textile associations has represnted their demands under new tax system. They said, the textile turn over is down by almost 50 per cent in the last few months due to GST. We have been facing procedural issues, which need to be sorted out at the earliest. The issues include quarterly filing of GST returns, abolition of reserve charge mechanism (RCM) and ITC-04. GST levied in the complex chain of textile industry has rendered a large number of workers in the entire value chain jobless or with halved salaries. They demands to resolve technical glitches in the GST portal and waived off all the penalties for late filing of GST returns.

89,000 powerlooms were sold as scrap in Surat : ManMohan Singh

Addressing to a business community in Surat former Prime Minister ManMohan said, GST is a good law but hastily implemented. The MSME sector has hit hard. In Surat 89,000 powerlooms were sold as scrap and it led to a loss of 31,000 jobs. The impact of demonetisation is not seen even after a year it's implemention. Unemployment is increasing and traders are in havoc. The manufacturing and turn over is down in industrial clusters and big markets across the country. Chinese companeis were benefited from this situation. In FY 2016-17, India's fabrics imports from China stood at Rs 1.96 lakh crore. During the same period in FY 2017-18, the imports from China increased to Rs 2.41 lakh crore. This unprecedented increase in imports by more than Rs 45,000 crore, a 23 per cent increase in a year, can be attributed largely to demonetisation and GST. Demonetisation and GST have also sown a deep-rooted fear of tax terrorism among the business community, he said.

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