Textile processors announced a 15% hike in job charges starting from November 15
Surat (Gujarat) [India], October 25: The famous Surti nine-yard wonder (Saree) and dress material manufactured in Surat, the country’s largest man-made fabric (MMF) hub, are set to become more expensive ahead of the Diwali festival season.
Reason: the textile dyeing and printing mills in Surat and surrounding areas of the city have unanimously decided to increase the job-work charges by almost 15%, with effect from November 15.
The South Gujarat Textile Processors’ Association (SGTPA), an apex body of the textile processors in Surat and South Gujarat, organised a meeting of the textile unit owners to discuss the hefty increase in the prices of the raw material including dyes, intermediates, chemicals and coal in the last few months.
It was unanimously decided to hike the job charges by almost 15% to adjust the profit margins due to the hefty increase in the raw material prices.
Jitendra Vakharia, president of, SGTPA told TBT, “Covid-19 has broken the spine of the textile sector in Surat. Post-Covid-19, the prices of raw material used in the textile dyeing and printing mills have gone up by almost 50%-60%. Some of the key chemicals used in the processing of fabrics have increased to a whopping 110% in the last six months”
Vakharia added, “It was inevitable for us to increase the job charges for the traders. We have learnt that the manufacturers of dyes, intermediates and chemicals are set to further increase the prices starting from November 1”
According to Vakharia, coal prices have gone up by almost 4 times in the last two months. Coal is scarce and that it is inevitable to pass on the price hike to the customers to sustain the textile mills in Surat.
Kamal Vijay Tulsiyan, president of Pandesara Association said, “Post-Covid-19, the system of credit has been abruptly discontinued by the majority of our raw material suppliers. Now, we have to make cash payment for the goods we purchase. Many unit owners have taken cash credit from the banks and are paying hefty interest on monthly basis. If we do not increase the job charges, many small units are on the verge of closure.”