Yarn prices in Surat have shot up tremendously. This is badly affecting the fiber industry, which buys yarn from spinners. Surat has India’s biggest manmade fiber industry.

Earlier, because of the currency changes, the industry suffered major losses due to the closure of a huge number of weaving units. Production of polyester fabric fell by almost 75 per cent. At one time there were around 6.5 lakh power loom machines, manufacturing around four crore meters of fabric a year. Post-demonetization, production of fabric reduced to just 1.5 crore meters.

Now, with some spinners setting up a cartel and increasing rates, the industry is staring at huge losses. Weavers wanting to replenish their yarn stock, and preparing for the upcoming marriage season, are in deep trouble with the increase in yarn prices by spinners.

Weavers feel there is no rationale behind such a stiff increase in yarn prices and that spinners are operating a price cartel to pressurize weavers. Weavers want the textile ministry to intervene or lift anti-dumping duty on import of yarns.

The bulk of the workforce is with dyeing and printing units in textile processing houses, with the power loom sector, and with packaging and unloading in the trading sector. Most of the workers employed in this industry are migrants from Uttar Pradesh, Bihar, Maharashtra, Rajasthan, Orissa and Andhra Pradesh.