Textile sector voices concern over power charges, yarn rates

Surat: Representatives of textile associations from South Gujarat on Tuesday raised concerns over yarn pricing, rising electricity costs, power outages and labour compliance challenges at a meeting convened by the Southern Gujarat Chamber of Commerce and Industry (SGCCI), which said the issues would be taken up with the govt.The meeting, attended by representatives of several textile associations, discussed issues affecting micro, small and medium enterprises (MSMEs) and possible responses by the industry.

Participants highlighted the impact of global crude oil price volatility on textile raw materials, particularly polyester and other man-made fibres, as well as transportation and production costs. Industry representatives demanded that reductions in crude oil prices be reflected promptly in yarn prices, arguing that yarn rates are increased quickly when crude prices rise but are not reduced proportionately when they fall.

Energy-related concerns also featured prominently. Members expressed apprehension over higher electricity costs following an increase of Rs 0.15 per unit in the Fuel and Power Purchase Price Adjustment (FPPPA) rate and the introduction of a 3.99% variable FPPPA charge from July.