Surat Textile mills production declined

Surat: Sluggish market and money crisis have reportedly resulted in at least 40% decline in the production of finished fabrics at textile processing units in the Indian textile hub, Surat. The decline in production has been majorly reported in the last fortnight. The negative impact of GST has hit the sector the most. Since the implementation of the new taxation system, the industry has reported a 30% hike in the cost of raw materials needed for the processing of grey fabrics.Surat: Sluggish market and money crisis have reportedly resulted in at least 40% decline in the production of finished fabrics at textile processing units in the Indian textile hub, Surat. The decline in production has been majorly reported in the last fortnight. The negative impact of GST has hit the sector the most. Since the implementation of the new taxation system, the industry has reported a 30% hike in the cost of raw materials needed for the processing of grey fabrics.

In addition to the price rise of raw materials, the industry players were forced to announce the wage hike for textile workers on Labour Day.

The absence of workers has also impacted the productivity. Those working overtime are seeking wage hike as they are supposed to meet production targets.

The reports claim that the severe liquidity due to delay in payments of almost 100 days and the decline in fabric demand have also added to the woes of manufacturers.

The unit owners do not have enough cash to pay wages to the workers.