Yarn is basic raw material for power loom sector and the increasing nylon and polyester yarn prices has destabilized the sector further which is reeling under the after-effects of implementation of Goods and Services Tax (GST), despite the fact that GST Council had reduced GST on yarn from 18 per cent to 12 per cent. The rally of yarn prices is going on since September, said Pandesara Weavers Cooperative Society President Ashish Gujarati.

Gujarati added that the production of grey fabrics has decreased from 4 cr mtr per day to less than 1.5 cr mtr per day. With yarn price hike, weavers are incurring loss of Rs. 2 per mtr. The loss in nylon fabric is very huge. According to the industry sources, front and second-line spinners had increased nylon yarn prices by almost Rs. 50 per kg since September, while polyester yarn prices increased up to Rs. 8 per kg. This has dealt a major blow to the production of grey fabrics and weavers incurring loss of Rs. 2 per mtr. Sources said that demand for polyester fabric, including saris and dress material, is at an all-time low. Business turnover in the textile markets has reduced by almost 60 per cent in the last few months. Despite this, yarn spinners have been increasing yarn prices.

Sachin Weavers Association President Mahendra Ramoliya said that a majority of power loom weavers are operating their units only thrice a day in Pandesara GIDC. The production of grey fabrics has gone down by almost 80 per cent. The GST has broken the spine of power loom sector. The vibrant business environment in the Diamond city Surat has gone for a toss.

In the last couple of months, many powerloom weavers have shut their units, rendering thousands of textile workers jobless. Also around more than 95,000 power loom machines have been sold in scrap. Still on an average around 150 power loom machines are being sold in scrap every day.