Surat textile industry: Meeting inconclusive, no decision on closing factories
A few days after the owners of the dyeing and printing plants in Surat proposed to close their units from November 1 due to the coal shortage and rising production costs, a joint meeting between the three associations textile industry held Monday to discuss the matter remained inconclusive.
The meeting, which took place at the office of the South Gujarat Chamber of Commerce and Industry, was attended by the president of the Federation of Gujarat Weavers Association (FOGWA) Ashok Jirawala, the chairman of Southern Gujarat Textile Processing Association (SGTPA) Jitubhai Vakhariya, Surat Textile Traders Federation. The president of the Association (FOSTTA) Manoj Agrawal and its former president Devkishan Mankani, among others.
At a SGTPA meeting on October 8, the owners of the plant suggested to keep units closed for a month due to the rising prices of colors, chemicals and the fuel crisis due to the coal shortage.
FOSTTA chairman Manoj Agrawal said they opposed the proposal to keep the factories closed for a month as it would affect the textile trade industry.
“For the past two months, textile factories had increased prices to Rs 2.50 per meter. We understand that the rise in the prices of coal and chemicals has led to an increase in printing costs, but every now and then they raise the prices…. We proposed to the SGTPA to fix the prices in accordance with the tariffs applicable on the day of delivery of the gray fabrics by the traders to the textile factories. But they rejected it, ”he told The Indian Express.
However, SGTPA chairman Vakhariya said the factories are suffering heavy losses. “For a month and a half, the prices of coal and chemicals have increased. We are also facing a shortage of coal supply… The prices of colors, chemicals and coals fluctuate at different times and depending on their availability, they are not uniform. Chemical factories also raise prices three times a week. “
SGTPA has yet to call for factories to close, and Vakhariya said it has called a general assembly of its members after October 20, at which the final decision will be made.
FOGWA President Ashok Jirawala said, “We understand the situation of the textile factories… They (the textile factories) can keep the factories closed for two days a week and continue production. There are 7.50 lakh mechanical weaving machines in Surat, which house more than 4 lakh workers. There are about 4 lakh workers who work in the 65,000 textile stores and shops, and about 3 lakh workers in the textile factories. If a segment of this chain is closed, the remaining segment will be automatically assigned… ”