GST has hit not only the power loom sector in Surat but even the textile processing sector.Most textile dyeing and printing mills have reduced the production of finished fabrics by almost 40 per cent due to recession, money crisis and weavers’ drastically reducing the production of grey fabrics.

The cost of raw material required for processing of grey fabrics has shot up by almost 30 per cent. Besides textile mill owners were compelled to increase wages of textile workers on May 1. Much of the textile workforce has moved out of the city to attend marriages and other social events in their hometowns.

The workers who stayed back demanded a wage hike as they had to work full-time to meet production needs in the factories.

Textile processors have been facing a severe liquidity crunch as textile traders have been delaying payments up to 100 days for various reasons, including recession, slowdown in fabric demand etc. Processors have increased job charges by almost 15 per cent to cope with the losses.

Power loom weavers are operating their units for just eight hours, which means the production of grey fabrics has come down to just 15 million meters a day.