The production of grey fabrics has taken a hit in Surat, the country's largest man-made fabric (MMF) sector with production decreasing by almost 55 percent in the last fortnight due to the agitation by textile traders against Goods and Services Tax on fabrics. The textile traders keeping their shops shut for three more days following the all India strike announced by traders from Tuesday, according to Industry Sources.

The daily production of polyester fabrics is pegged at 4 crore meters per day. At present, the powerloom sector is producing less than 2 crore metres per day.

Most of the powerloom units in Bhestan, Unn, Sachin, Katargam and Ved Road are operating their units in single shift for the last many days.

Sachin Weavers Association president Mahendra Ramoliya said that the powerloom weavers in Sachin GIDC manufacture around 50 lakh metres of fabrics per day. The production of fabrics has now come down to less than 10 lakh metres per day due to the ongoing strike by textile traders.

They are not opposed to 5 percent GST in the weaving sector, their request to central government is to provide them refund for the accumulated tax credit. If they don't receive the refund, the entire weaving sector will collapse after July 1 as GST rolls out.

Southern Gujarat Chamber of Commerce and Industry (SGCCI) secretary Devesh Patel, who is president of Ved Road Weavers' Association , said that a delegation from SGCCI and textile industry had met deputy chief minister Nitin Patel and put forth two demands firstly increase import duty on Chinese fabrics and second is to provide refund of accumulated tax credit.

Patel said that there are less than 1,000 textile process houses in the country, whereas the strength of powerloom weavers in the decentralized industry is more than 20 lakh. Hence, there can't be two rules in the textile sector. If the textile processors are eligible for refund of accumulated tax credit then they will also have to considered powerloom weavers for the same.