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South Gujarat fabric processors to shutdown units
Mar '11
In order to protest a 45 percent rise in the natural gas prices over last four months, more than 400 textile processing firms in South Gujarat would indefinitely cease production from April 1.

The shutdown would adversely impact the textile industry of Surat, as around 25 million metres of the grey fabric produced by weavers is forwarded to the textile processing units in and around Surat, for dyeing and printing.

As stated by the textile processors, the base price of natural gas was raised to Rs. 13.36 per standard cubic metre in January 2011 from previous Rs. 11.50 per standard cubic metre, and now the Gujarat Gas Company Ltd (GGCL) has forwarded letters to the gas consumers intimating that the prices would be further hiked to Rs. 16.64 per standard cubic metre from April 1 onwards.

Also, the South Gujarat Textile Producers Association (SGTPA), which is leading the protest against GGCL, contended that, GGCL being the only gas supplier in the region of South Gujarat, is taking undue advantage of its monopoly position, to make extra profits by increasing the gas prices for no valid or legal reason.

The textile processing firms are already confronting difficulties due to soaring costs of inputs like fabrics, dyes and chemicals, coupled with acute labour shortage.

SGTPA, on March 28, handed over a memorandum to GGCL authorities, whereby it sought withdrawal of new price hike notification.

The decision to indefinitely shut down the units came about during a meeting of the textile processors, convened by the SGTPA on March 28.

Fibre2fashion News Desk - India

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