Home / Knowledge / News / Textiles / AP traders protest over VAT affects Surat textile industry
AP traders protest over VAT affects Surat textile industry
16
Apr '12
The growing agitation by textile traders in southern Indian state of Andhra Pradesh is already showing its negative impact on the textile industry of Surat, known for manufacturing of synthetic and man-made fabrics.

Earlier this month, the Andhra Pradesh Federation of Textile Associations (APFTA) announced that wholesale, semi-retail and retail traders in the state would go on an indefinite strike from April 30, 2012 to protest against the imposition of the value-added tax (VAT) on textiles by the state government. APFTA also said that traders would stop buying textile goods from other states beginning April 15, 2012.

Immediately after the announcement, transporters in Surat stopped taking bookings and traders from Andhra Pradesh started cancelling their orders.

In September last year too, the Surat textile industry was affected due to unrest and agitation over the Telangana issue in some parts of Andhra Pradesh.

Mr. Devkishan Manghani, General Secretary - Federation of Surat Textile Traders Association, told fibre2fashion, “The textile traders in Andhra Pradesh are carrying out an agitation that they will not buy goods from Surat and other places unless the 5 percent VAT on textiles is withdrawn by the state government. As the traders refused to buy the goods from April 15 onwards, transporters stopped taking bookings for Andhra Pradesh a week earlier, thus disturbing the supply chain. This has already resulted in a loss of around Rs. 500 million worth of sales until now.”

Informing about Surat's textile products that are purchased by AP cloth merchants, he says, “Sarees is the main product supplied by Surat textile industry to Andhra Pradesh. On an average, AP traders purchase about Rs. 70-80 million worth of goods on a daily basis from Surat. Even during an off-season, there is Rs. 50 million worth of business a day with AP.”

“Sarees that are produced for Andhra Pradesh have different colours and prints compared to sarees meant for other states. It is because the sarees are given unique feel based on the tastes of the people in the region. So, a particular lot of goods produced for supplying to AP, cannot be sold in other regions, and hence the overall sales gets affected,” he explains.

Commenting further on the current situation, he says, “The AP traders are on an indefinite strike. Unless they have positive talks with their government, it is difficult to say when they will call off the strike. If the agitation continues for a longer period, it will cause huge loss to Surat's textile industry, which is already facing troubles due to rise in crude oil prices, electricity tariffs and several other factors.”

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search