Surat: Prevailing recession in textile industry has forced owners of textile processing units in GIDCs of Sachin and Pandesara to keep their units shut for three days in a week to cut down on production and overproduction of finished polyester fabrics. 

A few small processing units have announced temporary closure due to various factors, including Goods and Services Tax (GST), weak demand of polyester fabrics and labour issues for the last few months. 

There are about 350 textile processing units in Sachin, Palsana, Kadodara and Sachin employing over 2.5 lakh textile workers. The grey or unfinished fabrics manufactured by powerloom weavers are sent for finishing at the textile dyeing and printing mills for final finishing. 

Sources said demand for polyester fabrics is on lower side in the country for a very long time. Issues related to GST, filing of returns, ITC-O4 and refund of input tax credit (ITC) have been pending for last many months. 

South Gujarat Textile Processing Association president Jitu Vakharia said, “The textile processing sector has no work at all. Supply of grey fabrics from the textile market has reduced by almost 60%. Traders are facing a gamut of issues concerning GST and liquidity crisis etc. Textile processors are forced to keep their units shut for three days in a week. Labourers, who had gone to their native villages after March, are yet to return. Embroidery and weaving units are facing severe shortage of workers.” 

A textile processor, who didn’t want his name to be published, said, “The textile industry is in the doldrums because of GST and demonetization. The working capital of the processors has evaporated and there are no funds left with them to operate the units.”

Published On : 26-06-2019

Source : Times of India