Increase in Job Losses, Many Fear Unemployment

INDIA NEWS

Increase in Job Losses, Many Fear Unemployment

July 24, 2017



Every coin has two sides and so is with GST as well, as lakhs of workers working in powerlooms and processing units have been rendered jobless due to the shutdown of mills due to the ongoing strike. While the loom owners are afraid that the rise in their manufacturing cost will not be offset by the tax on products, textile workers are staring at an uncertain future. The powerlooms manufacture weave cloth, which is purchased by textile traders who then send it to the processing units for dyeing and printing. There are around 350 processing units in Surat with a daily turnover of approximately Rs 70 crore.

The weavers have, however, shut operation due to the lack of demand leading to piling of unsold stock. The printing mills have been running with leftover stock, making it difficult to keep operation going without any fresh supply, and as a result 70% of the factories have shut shop. According to the traders, they have incurred a loss of Rs 150 crore due to the ongoing stir and that huge stocks of unsold textiles have begun piling up in their shops, godowns and factories.