Surat textile units down shutters after demonetisation

23 Nov '16

2 min read

Whether manufacturers, wholesalers or retailers, there is no demand in the Surat textile market, as cash liquidity has almost been squeezed, due to demonetisation. This has resulted in closure of 80 per cent of textile fabric processing facilities, almost 90 per cent of embroidery and knitting units, while weavers are operating only one shift per day.

This was told by Synthetic and Rayon Textile Export Promotion Council (SRTEPC) vice-chairman Narain Agarwal to a leading daily, who also added that barring spinning units, majority of other textile manufacturing units like texturising, twisting, weaving, processing and embroidery units have been paying wages in cash to the workers.

According to Agarwal, these units maintain accounts for the same, which reflects in their balance sheets.

“But after demonetisation, there is a big question mark on providing wages to workers of these units, for which they have demanded from the government that factory owners should get cash in new currency, while they would also encourage workers to open bank accounts," he informed.

As per a SRTEPC presentation, the textile trade has gone into a slide with all segments across the textile value chain facing severe liquidity crisis, due to dwindling demand of fabrics from various markets in the country. (AR)

Fibre2Fashion News Desk – India

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