MMF traders and processors dissent to hike in job charge

YarnsandFibers News Bureau, 2014-07-19 12:00:00 - Surat

Related Keywords: crude oil price, Federation of Surat Textile Traders' Association, inflation, late monsoon, MMF, processor. job charge hike, SGTPA, trader

Surat
MMF traders and processors dissent to hike in job charge

MMF traders and processors highly disturbed with the hike in job charges recently announced by South Gujarat Textile Traders Association (SGTPA). They have strongly opposed to accept any further hike in prices or taxes stating that it is difficult for them to pass on the burden to the buyers when the man made fabric (MMF) demand has already been hit by inflation followed by late monsoon.
 
Two days ago, the SGTPA office-bearers had announced 10 per cent hike in the job charges effective from August 1 citing phenomenal increase in production cost due to the rising prices of chemicals and dyes, coal, lignite and power.
 
According to the Federation of Surat Textile Traders' Association (FOSTTA) president Sawar Prasad Budhia, for the MMF fabric sector usually monsoon remains to be slack season moreover with hike in the job charges, they won't be able to pass on the price hike to the buyers. They have urged the textile processors to roll back the price hike or they will have to oppose it collectively.
 
FOSTTA general secretary Champalal Bothra said that there is already 25 to 30 percent reduction in the daily turnover of MMF fabrics due to hike in the crude oil price which has resulted in increase of yarn prices making the unfinished fabric costly. With further hike in job charges by 10 percent will result in an overall increase of around 15 percent in the finished fabric category.
 
As per SGTPA, there is absolutely no question of a roll back in job charges as the processing units in Surat are operating on break even profit and they have no other option but to increase the job charges.
 
A meeting of the traders and processors is likely to be held in a day or two to discuss the matter and arrive at a solution

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Related Keywords: crude oil price, Federation of Surat Textile Traders' Association, inflation, late monsoon, MMF, processor. job charge hike, SGTPA, trader

Surat
MMF traders and processors dissent to hike in job charge

MMF traders and processors highly disturbed with the hike in job charges recently announced by South Gujarat Textile Traders Association (SGTPA). They have strongly opposed to accept any further hike in prices or taxes stating that it is difficult for them to pass on the burden to the buyers when the man made fabric (MMF) demand has already been hit by inflation followed by late monsoon.
 
Two days ago, the SGTPA office-bearers had announced 10 per cent hike in the job charges effective from August 1 citing phenomenal increase in production cost due to the rising prices of chemicals and dyes, coal, lignite and power.
 
According to the Federation of Surat Textile Traders' Association (FOSTTA) president Sawar Prasad Budhia, for the MMF fabric sector usually monsoon remains to be slack season moreover with hike in the job charges, they won't be able to pass on the price hike to the buyers. They have urged the textile processors to roll back the price hike or they will have to oppose it collectively.
 
FOSTTA general secretary Champalal Bothra said that there is already 25 to 30 percent reduction in the daily turnover of MMF fabrics due to hike in the crude oil price which has resulted in increase of yarn prices making the unfinished fabric costly. With further hike in job charges by 10 percent will result in an overall increase of around 15 percent in the finished fabric category.
 
As per SGTPA, there is absolutely no question of a roll back in job charges as the processing units in Surat are operating on break even profit and they have no other option but to increase the job charges.
 
A meeting of the traders and processors is likely to be held in a day or two to discuss the matter and arrive at a solution

0

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Related Keywords
crude oil price Federation of Surat Textile Traders' Association inflation late monsoon MMF processor. job charge hike SGTPA trader

 
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