Industry leaders and traders in Surat fear rising cost of products due to QCO implementation, even as a delegation of manufacturers will go to Delhi to discuss textile issues including quality control orders for polyester yarn.
Textile weavers and traders claim that prices of finished textile products will shoot up following the implementation of QCO from April. QCo was introduced by the government to restrict the imports of cheaper raw materials and improve product quality.
Around 100 polyester yarn manufacturers are currently supplying raw materials for weaving, accordion to textile industry leaders. Of these 100, around 15 are qualified as per the QCO, which will come into force from April 3, creating a shortage of greige cloth in the market and pushing prices up.
“Textile traders are worried as there will be a shortage of suppliers of yarn and ultimately cloth. It will impact the entire business. We hope that some positive outcome is announced by the government soon,” said Manoj Agarwal, president, Federation of Surat Textile Traders’ Association (FOSTTA).
A delegation from the city including chairman of Federation of Indian Art Silk Weaver Industry (FIASWI), Bharat Gandhi, Himanshu Bodawala, president of Southern Gujarat Chamber of Commerce and Industry (SGCCI), and the past president of SGCCI, Ashish Gujarati are visiting Delhi to make representation on various issues related to the textile industry.
“Among 100 yarn manufacturers, there are only around 15 who qualify as per QCO. Such a small number of yarn manufacturers cannot meet the demand of the industry,” said Gandhi, adding that the quality upgradation should be done, but that the industry needs time to meet the standard requirements.
“We are hopeful that the Union government will consider the demand to postpone the implementation of the QCO. Only 10 per cent of the yarn manufacturers are eligible as per the QCO,” said Gujarati
