The skyrocketing COVID-19 cases have stopped the revival in Surat’s synthetic textile hub. With nearly 215 daily new cases and the total tally at 6,313 along with 200 deaths has halted the business activity across the textile chain, right from spinning yarn to making garments.
Besides, despite the rupee value is decreasing against the dollar to Rs 76.97, the textile industry has not been able to hold it in terms of exports. Surat holds around a 45 percent share in total man-made fiber/synthetic textiles produced, along with synthetic textile yarn, fiber, fabrics, and made-ups, with annual exports of $6 billion.
Surat’s synthetic textile: Before the coronavirus outbreak, Surat would manufacture 20-25 million meters of synthetic textiles per day. However, this was still down from a peak of 40 million meters per day before demonetization and GST.
According to Chaudhary and Devkishan Manghani, advisor, Southern Gujarat Chamber of Commerce and Industry (SGCCI), textile trading and manufacturing had reached 5-10 percent of its original capacity.
However, civic authorities have ordered the closure of major textile markets, causing a halt in the business activity.
Imports of nylon yarn from China is another mare’s nest for the textile industry, especially in Surat.
According to Narain Agarwal of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), as compared to the domestic production of 120,000 tonnes, close to 25,000 tonnes were being imported, with China accounting for 58 percent of the same.
Many times the industry body has requested the government for imposing an anti-dumping duty on nylon yarn, which was expired in January 2018.
Surat’s synthetic textile: During this uncertain period, Indian industries are suffering from lack of business and Chinese imports are putting more pressure on them. Currently, nylon yarn imported from China is cheaper than the domestic variety by Rs 15-20 per kg, thus, affecting domestic industries, even more, said Agarwal.
At the same time, domestic nylon yarn catches an inverted GST rate of 18 percent on other raw material caprolactam and attracts 12 percent on the final finished yarn.