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Weaving Industry Views

Published: March 16, 2020

By- Sarosh Fakih

Weaving Industry comprises 65-70 % of the entire Textile industry. And yet, this industry’s representatives were never involved with policymaking. 

None of the weaving sectors were invited for the new textile policy meeting in Bhiwandi, Surat, Ichalkaranji, and other cities of south India. We expect the new textile policy to focus on weaving and the processing sector, as there has never been enough finance allocated to the weaving industry. The textile budget allotted to this industry in the past few years is around Rs.5000 crore, out of which the weaving sector gets only 3% of the budget even though it represents 70% of the industry.  

In the new textile policy, the ministry has planned to compulsorily scrap off all the power looms and bring in the latest technology. 

There are around 23 to 27 lakhs power looms in the country out of which only 1,35,000 and 1,50,000 are shuttleless high-speed machines. Abolishing such a significant number of devices in the entire sector will be done between 2020 to 2025. 

Before the industry takes up the leap, its mandatory to study product specification as certain products can only be made on basic power loom and up-gradation of these looms will require more than 1 lakh of funds spread over 5 years to conduct such activities. 

The production capacity to make 50,000-meter cloth is not available which in turn leads to disruption in employment and business.

Another issue that comes into the picture is the insufficient amount inclined to make changes in the sector. The amount allotted is 1 lakh crores which were found to be inadequate because the changes include a lot of things such as changing the architecture of the shades, wipes, and requirement of machines, etc. Thus, in order to bring modernization more than two and a half to three crores are required.

The weavers are suffering due to heavy anti-dumping duties on polyester yarn. The anti-dumping duties of yarn make the industry and weavers suffer, so eliminating them is demanded.

Ready-made apparel and garments imported from the NFS status nation are duty-free, which leads the industry to subsidize Bangladesh, Vietnam and other such countries. The importing countries are given elite treatment by our industry however as the weaving sector is not able to cope up with demand and supply approach because of the infrastructure it leads to the suffering of the industry impacting its economy and GDP rate. The request to the government has been initiated to bring up modernization to improve the productivity of the weaving industry systematically.

The suggestion would be to introduce more looms to the sector to meet the demands and match the exporting capability with countries such as Bangladesh and Vietnam. The Government introduced a “breathing space” initiative and also RSEF which assure to be on the better side for upgrading and supporting the industry since there are many opportunities for the Industry to grow worldwide. Looking at the endeavour shows a wider scope for the industry to create a better working textile market globally.

Mr. Ashish Gujrathi from Pandessara Weavers Association stated that After China’s Corona Virus , Surat weaving industry is in the comfortable position, as China’s Export has stopped. New enquiry generated from EU, USA. Our members have total 40000 shuttle less looms  which are Rapier, waterjet, airjet Morden loom for export quality  fabrics. We make millions of meter fabrics daily in Surat, out of which 5% quality is for Export, Surat making Umbrella, Luggage fabrics, grey fabrics , garment fabrics , coated and laminated fabrics. Our industry growing at 3-4 % YOY. Pandesara has 700 members and 400 process house.

Nylon spinners have met press people and told that import should be stop but only 15% import happening in the country. When Surat manufacturer diverting production from polyester to nylon with same machinery , the quality of imported nylon yarn is missing, so import is natural. Nylon manufacturer growing at 26 % with , 33% Profit.

Mr. Ashokbhai Jirawala, President of Federation of Gujarat Weavers Welfare Association, Surat Industry problems floated to government but not taken fruitful step and action. Surat is self made industry city but fast growth requirement is missing. Other state policies giving excise , power benefits etc. Gujarat government planning to give power benefits upto  Rs.2  for industry for certain conditions, GI  has been issued but not implemented till now. Surat has 8.5 lakhs power-looms, Number one production in the world with 3000 crore meter production per month. Due to missing speed in Surat for expansion purpose, many industries are relocating from Surat to Nandurbar, Malegaon, Ichalkaranji, Rajasthan etc. Textile industry has 200 crore defaulter every year, no action taken for this. Technology upgrade, Speed, Power, GST, State Policy, Subsidy , Exemption many issues Surat industry facing right now, but no action taken by Textile Ministry yet.

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