Surat: The powerloom weavers have strongly demanded that the central government immediately implement the anti-profiteering committee against the yarn spinners who have increased the prices despite the government lowering the
GST from 18% to 12%.
Weavers stated that the yarn spinners have formed a cartel and that they are increasing prices every fortnight by Rs 2 to Rs 3 per kg.
Industrialists in the powerloom sector stated that the front and second-line spinners have gone on a spree to increasing prices, which is the main raw material for the weavers. The price hike has come even as there is subdued demand of the polyester fabric across the country and the exports are dwindling.
In January, the spinners had increased the yarn prices by almost Rs 50 per kg in nylon filament yarn and Rs 20 in other categories, giving a tough time to the powerloom weavers. Talking to TOI, president of Pandesara Weavers Cooperative Society Limited, Ashish Gujarati said, “The GST on yarn has been reduced from 18% to 12%. Instead of passing on the benefit of the rate reduction to the weavers, the spinners are continuously increasing yarn prices every fortnight by Rs 2-3 per kg. The price hike is going on since GST was implemented on July 1” Gujarati added, “We have decided to file a complaint against the yarn spinners before the standing committee of the GST under the anti-profiteering rules.” President of Sachin Weavers Association, Mahendra Ramoliya said, “Yarn is a basic raw material and the increase in prices has severely impacted the powerloom sector. Even though we are investing in modernized machines, but the cost of raw material is bringing down our net profit margins.”
Source: timesofindia.indiatimes.com