Polyester fabric production falls by half

YarnsandFibers News Bureau, 2019-08-19 14:00:00 - India

Related Keywords: fabric, GST, import, India, man-made, MMF, polyester, raw material, technology, Textile, yarn

India
Polyester fabric production falls by half

With production on a nosedive, all is definitely not well in the country’s largest man-made fabric (MMF) hub. Polyester fabric has decreased production by almost half from 13,000 metric tonne (MT)to 7,500MT per annum.

In its report, the textile committee of Southern Gujarat Chamber of Commerce and Industry (SGCCI), stated that the growth rate of polyester fabric production has decreased by 40% per annum after the central government imposed Goods and Service Tax (GST) in 2016. The report further states that the higher cost of raw material, including yarn, is posing a major challenge to the MMF sector. Also, the import of cheap fabrics from China, Bangladesh and other Asian countries has cast a dark shadow on Surat’s MMF sector.

The quantum of investment in the MMF sector has significantly reduced under the Amended Technology Upgradation Fund (ATUF) scheme due to the drastic cut in subsidy provided by the central government. About seven approved projects under the Group Workshed Scheme (GWS) have backed out due to the reduction in subsidy under ATUF.

According to the report, the MSME weaving sector is one of the important sectorsin textile for Centre’s Make In India campaign. To compete with global competition, shuttle-less looms are must to maintain best quality in weaving. However, restoration of 30% subsidy under ATUF is the need of the hour to maintain modernisation in the MMF sector, said experts.

Talking to TOI, chairman of SGCCI’s textile committee, Ashish Gujarati said, “There are issues galore in the MMF sector. Prio to inmpementation of GST, there were 6.50 lakh powerloom machines in Surat. Post-GST, the total number of weaving machines have been reduced to just 5.50 lakh.”

Gujarati further said that the committee has submitted the report to Union textile minister Smriti Irani, too, seeking her intervention.

Courtesy: The Times of India

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Related Keywords: fabric, GST, import, India, man-made, MMF, polyester, raw material, technology, Textile, yarn

India
Polyester fabric production falls by half

With production on a nosedive, all is definitely not well in the country’s largest man-made fabric (MMF) hub. Polyester fabric has decreased production by almost half from 13,000 metric tonne (MT)to 7,500MT per annum.

In its report, the textile committee of Southern Gujarat Chamber of Commerce and Industry (SGCCI), stated that the growth rate of polyester fabric production has decreased by 40% per annum after the central government imposed Goods and Service Tax (GST) in 2016. The report further states that the higher cost of raw material, including yarn, is posing a major challenge to the MMF sector. Also, the import of cheap fabrics from China, Bangladesh and other Asian countries has cast a dark shadow on Surat’s MMF sector.

The quantum of investment in the MMF sector has significantly reduced under the Amended Technology Upgradation Fund (ATUF) scheme due to the drastic cut in subsidy provided by the central government. About seven approved projects under the Group Workshed Scheme (GWS) have backed out due to the reduction in subsidy under ATUF.

According to the report, the MSME weaving sector is one of the important sectorsin textile for Centre’s Make In India campaign. To compete with global competition, shuttle-less looms are must to maintain best quality in weaving. However, restoration of 30% subsidy under ATUF is the need of the hour to maintain modernisation in the MMF sector, said experts.

Talking to TOI, chairman of SGCCI’s textile committee, Ashish Gujarati said, “There are issues galore in the MMF sector. Prio to inmpementation of GST, there were 6.50 lakh powerloom machines in Surat. Post-GST, the total number of weaving machines have been reduced to just 5.50 lakh.”

Gujarati further said that the committee has submitted the report to Union textile minister Smriti Irani, too, seeking her intervention.

Courtesy: The Times of India

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fabric GST import India man-made MMF polyester raw material technology Textile yarn

 
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