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Surat will get Textile Skill development centre soon !!!

Textile city Surat will have new skill development center in near future. Last week, The cabinet committee on economic affairs, has given its approval for Scheme for Capacity Building in Textile Sector (SCBTS), a new skill development scheme covering the textile sector. This scheme will have an outlay of Rs 1,300 crore for 3 years. Industry sourses Said, these center will develop in Surat, Ichalkaranji, Bhilwara, Tirupur, Varanasi, Malegaon, Pali and in Bhiwandi. The scheme will have 'National Skill Qualification Framework (NSQF)' compliant training courses with funding norms as per the common norms notified by Ministry of Skill Development and Entrepreneurship (MSDE).

There are 6.5 lakh powerloom machines are installed in surat which produces app. 3 crore meter fabrics per day.
Weaving industries in the city is unorganised and most labourers in the city are self-groomed without any proper technical skill orientation or training and this creates an inconsistency in the production and quality parameters. Upskilling and recognition of prior learning is the need of the hour for the Surat powerloom industry, which employs four lakh workers directly. The skilling programmes would be implemented through textile industry to meet trained manpower requirement. The new skill development center will help the industry to adopt scientific principles for upgrading skills of employees and achieve higher productivity. It would also facilitate to cut cost and improve fabrics quality in textile manufacturing unit. Around 10 lakh people are expected to be skilled and certified in various segments of textile sector across the country.

Burden on traders as fabric job charges may increase upto 10% !!!

Thousands of textile traders in the city may have to pay more for fabric's dyeing and printing job. The textile processors are all set to hike the job cherges upto 10% in near days. Now a days, traders are already full of anxiety with GST issues, enhanced packaging material cost and with further hike in fabric processing job charges upto 10 percent will result in an overall increase of around 15 percent in the finished fabric category.

The textile mill sources said, the hike in job charges is inevitable due to the increase in the raw material costs.  The prices of dyes-chemical, coal, lignite, and labour charges have increased by 15 to 20% in the last few days. Besides this, the Gas company recently has increased the prices of natural gas supplied to its industrial consumers. The hike in the fuel prices is likely to hit the dyes, chemicals and textile processors very hard in south Gujarat. Around 350 textile dyeing and printing mills are operating below of their capacity. Sources said, the overall operating cost in the mill is increased. Now, the processrs have no option but to increase the fabric job charges. The processors will meet shortly to study raw material, fuel price hike and accordingly increase the job charges. The job charges may raised by 5-10% in mid of January.

On the other hand, the textile traders are not happy with any price hike in job charges. The traders association said, synthetic textile industry in Surat are yet to come out of the GST issues and the hike in fabric dyeing and printing job rates will further increases the burden. They won't be able to pass on the price hike to the buyers. There is already 25 to 30 percent reduction in the daily turnover of MMF fabrics due to hike in the crude oil price which has resulted in increase of yarn prices making the unfinished fabric costly. Surat's power loom weavers used to manufacture 3 crore metre of fabrics per day; which have been reduced to 2 crore metre per day post-GST. The daily business turnover in the textile market has come down drasticaly.  

Confusion of GST rate on unstitched fabrics over Rs.1000

The Goods and Service Tax (GST) rate issue has again created a confusive situation for textile traders. The textile traders dealing in unstiched fabrics were doing business by imposing 5% GST on lenghas, unstitched salwar kameez and dress material and maintaining record accordingly to file the returns till the date. Now they are worried as they will have to reverse the entries of their sale as tax consultants have clarified that GST on these fabrics priced above Rs 1,000 was 12% and not 5%. The GST Council, earlier had kept GST rate on unstitched fabrics at 5%. Now, the rate has been increased to 12% on products above Rs 1,000. Traders are in confusion as they have been charging 5% GST on such items. Sources said, there is no clarity from the GST commission rate over 12% GST on unstitched fabric. It is going to be tough for many traders to correct the old bills.

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