Surat: Due to global recession, rising prices of yarn and poor demand for the last one year, nylon weavers are closing down their machines as nylon weavers are losing Rs.
- Nylon weavers shut 20% of units after suffering losses for over a year due to higher yarn prices
- Due to weak demand, some nylon weavers built new machinery to make cloth from other yarns
Mayur Chevli, president of Nylon Yarn Weavers Association, said that many weavers of the city who were operating machines on rent were running the machines in the midst of a situation that was not called or tolerated. Seeing the current situation, he has stopped the machinery. Those who own their own accounts are installing polyester quality components on their machines as per the market demand.
Gray cloth made from nylon yarn has no particular demand in the market. However, the spinners are driving up the price of nylon yarn by forming a cartel. Due to lack of demand in the market, the demand and supply chain is not moving, so nylon weavers are shutting down the machines and directly cutting the production.
Weaver leader Mayur Golwala said, 10-12 spinners are not meeting the demand of weavers and on the other hand are exploiting the weavers by artificially increasing the prices of nylon yarn. The spinners are not producing nylon yarn as per the demand of city weavers. Due to which Vivaro is dependent on imported nylon yarn. At present 5.50 percent basic customs duty is applicable and the spinners have proposed to the central government to increase the duty by 15 percent.
In this matter, the Union Textile Minister, Finance Minister and Fiaswin have presented and warned that if the customs duty increases, nylon yarn machinery will have to be sold as scrap. Annual production of spinners in FDY is 78000 tonnes and 86400 tonnes of yarn is consumed in weaving industry annually. This general calculation makes it clear that the spinners are not able to meet the consumption of Surat’s nylon weaves alone.
Importantly, spinners are raising the prices of yarn by creating an artificial boom, Vivero is aware of spinners’ syndicates that are changing the quality. Only 10 to 12 percent of the imported nylon yarn comes to India. Such is the case before the basic customs duty is not levied then. So if the duty increases due to the duty-related movement performed by the spinners, the spinners will get a bonus.