Power loom weavers in the country's largest man-made fabric (MMF) industry are planning to file a complaint against yarn spinners before the standing committee on anti-profiteering and state-level screening committee under Anti-Profiteering Rules, 2017, of GST Act for not passing on the benefits of tax rate reduction and increasing yarn prices by almost Rs 8 per kilogram in the last 10 days.
Power loom sector leaders say front and second line spinners have gone on a spree to increase prices of yarn, which is the main raw material for power loom weavers. The price hike has come even as there is a subdued demand for polyester fabrics across the country and exports are dwindling.
Pandesara Weavers Cooperative Society president Ashish Gujarati says iInstead of passing on the benefit of rate reduction to weavers, the spinners have increased yarn prices in the last 10 days. The price hike phenomenon is going on since GST was implemented on July 1. Member of Federation of Gujarat Weavers' Association (FOGWA) Mayur Golwala says that the government must come out with stringent rules against companies indulging in profit-making and not passing on benefit of rate reduction under GST.
Textile processors in South Gujarat, including Surat, have unanimously decided to increase job work charges between 10 and 15 per cent following increase in costs of chemicals, dyes, coal, fuel and labour. The decision to this effect was taken at a meeting convened by South Gujarat Textile Processors' Association (SGTPA) on Friday, where around 100 members from different industrial areas participated. The hike in job charges will come into effect from February 2018.