Yarn spinners have gone on a spree to increase yarn prices post-Goods and Service Tax (GST), regardless of power loom industry leaders filing a complaint for artificial price hike with the anti-profiteering screening committee. The production of grey or unfinished fabrics has seen a remarkable decline from 4 crore metre per day to less than 2 crore metre per day.
Federation of Indian Art Silk Weaving Industry (FIASWI) chairman Bharat Gandhi said, â€œThe situation in power loom sector has gone bad to worse. Job creators have become job seekers. The weavers have reduced grey manufacturing capacity by almost 50 per cent.â€
Pandesara Weavers Association president Ashish Gujarati expresses that, â€œAbout 1 lakh power loom machines have been sold in scrap post-GST. This means that 6,000 power loom units have shut shops, rendering 40,000 workers jobless. Despite this, the yarn spinners keep increasing yarn prices.â€
He further added that, â€œSince January 2018, the yarn spinners have revised yarn prices ranging from Rs 35 per kilogram to Rs 50 per kilogram. This is a huge increase when crude oil prices are under control, the GST on yarn has been reduced from 18 per cent to 12 per cent and that the yarn spinners are also getting refund on input tax credit (ITC).â€
Around 40,000 workers have been left jobless. Industry sources said about 6,000 small units-those having 12 to 36 power loom machines-have shut shops due to GST and hike in yarn prices in the last few months.
Hundreds of small-time power loom weavers have reduced their manufacturing capacity for grey fabrics by almost 50 per cent following steep increase in yarn prices in the last few months.
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