Home / Knowledge / News / Textiles / Diesel price hike affects Surat textile sector
Diesel price hike affects Surat textile sector
19
Sep '12
Transportation plays a key role in the textile sector and any changes in transportation charges affect the cost of finished textile goods. The recent hike in diesel prices has resulted in increased transportation costs, which is affecting the manmade textile hub of Surat.
 
Mr. Devkishan Manghani, President of the Federation of Surat Textile Traders Association, spoke to fibre2fashion on this matter. He says, “The transportation charges have been increased by 10 to15 percent per kilogram of textile products. The reason behind this is the hike in prices of diesel.”
 
“The price of diesel was Rs. 45 per litre in Surat, which has been increased to Rs. 50/litre now. Moreover, the VAT applied on this increases another one rupee. Hence, the hike comes out to around 13 percent which is high enough for the transporters to increase their freight charges,” he adds.
 
He informs that the increased transportation costs will further affect the price of finished fabrics. “Transportation plays a very important role in the entire fabric manufacturing process, beginning right from POY to yarn to grey and so on, till the finished fabric is made,” he avers. 
 
“Because the intermittent textiles move so much, the price of the end product is sure to increase along with the intermittent products. Consequently, the overall price of the fabric will also increase by 10 to 12 percent,” he explains.
 
When quizzed about the steps that they are planning to take against the price hikes, he replies, “We shall close down our shutters on September 20 to protest against the Government’s decision to allow FDI in multi-brand retail as well as the hike in diesel price, which affect the textile industry.”
 
However, an optimist Mr. Manghani concludes, “In India, the textile and clothing industry booms only for two reasons – festivals and wedding season. The biggest Indian festival Diwali is just round the corner and we hope that the industry would fare well.”
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Textiles | On 20th Feb 2017

Sri Lanka's textile exports rise 2.3% in Jan-Oct '16

Exports of textiles and garments from Sri Lanka increased by 2.3 per...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mohammad Hassan
Biax Fiberfilm

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search