Costlier electricity adds crores to industry costs: ‘When crude prices rise, you hike yarn prices; why not

To discuss the impact of these issues across the textile value chain, the chamber held a meeting with representatives of various textile-weaving associations at its Sarsana office.

Industry representatives demanded an end to what they described as the unilateral pricing policy of spinners. They questioned why yarn prices are increased immediately when crude oil prices rise, but are not reduced with the same speed when crude prices fall.

Chamber president Ashok Jirawala said practical issues faced by all associations would be compiled and jointly presented to the Central and state governments to help the MSME sector remain competitive in international markets.

Since July, DGVCL has increased the FPPPA rate in electricity bills by 15 paise per unit and imposed a 3.99% variable charge, adding a monthly burden of crores of rupees on the industry.

Frequent unannounced power cuts have further disrupted production. When electricity supply suddenly stops, high-speed waterjet and airjet looms, as well as automatic looms, come to a standstill. The sudden stoppage can cause yarn breakage, resulting in defective fabric and financial losses.