The South Gujarat Textile Processing Association (SGTPA) in their general body meeting on Saturday, decided not to keep dyeing and printing mills in Surat shut in November.
With the spike in the demand for the finished textile goods due to coal shortage and increase in prices of chemicals, several mill owners, during a meeting of the SGTPA, in the first week of October, suggested they will have to shut the mills for a month in November.
The final decison on the keeping the mills shut was not taken in the meeting and SGTPA president Jitubhai Vakhariya had said it will be deicided in the meeting on October 23.
During the meeting on Saturday, the mills owners suggested not to keep the units closed.
One of the major issues raised by the mill owners was that there might be problem of migration of labourers from Surat to other states and the coal issue had been solved upto some extent.
The mill owners pointed out that there is a good demand of textile finished goods across the country due to the Diwali festival, marriage season and Pongal festival, which will last for the next three months.
SGTPA president Jitubhai Vakhariya said, “Our meeting concluded with the decision not to keep the mills shut for one month. We will call our next meeting on November 15 to discuss the increase in work charges by 15 per cent. Presently the payment structure by textile traders to mill owners varies from 7-30 days. We have decided to bring uniformity and a fixed period for the payments.”
Textile mill owner Sanjay Saraogi said, “The lignite coal supply has been presently streamlined to an extent, and we have got stock of lignite coal for the next 15 days. The monsoon season has also ended and we hope that after Diwali the supply will smoothen to an extent. “
“Our association is also carrying out discussions with GMDC (Gujarat Minerals Development Corporation) and we are hopeful of a positive response. If the mills remain shut for one month all the machinery will get jammed and it would take five days to restart the machines and the mill owners wil have to spend lakhs of money. The major issue was if the mills remain shut for one month, the labourers may migrate to their native places, ” he added.
Southern Gujarat Chamber of Commerce and Industry (SGCCI) president Ashish Gujarati also said that if the mills remain shut for one month, different segments in the textile industry like powerloom sector, trading sector, embroidery, will be affected.
“It would be difficult for the labourers to survive in Surat as they have to regularly pay their rents,” the SGCCI president added.