Fall in international crude oil prices has given a reason to ailing power loom weaving sector to cheer. In the last fortnight, yarn manufacturers have reduced polyester yarn prices by almost Rs15 per kilogram giving a major relief to weaving sector.
Industry sources said reduction in polyester yarn prices has been witnessed for the first time post-Goods and Services Tax’s implementation. In the last 14 months, yarn spinners were on the spree of increasing yarn prices, giving a tough time to power loom weavers struggling with market recession and the issue of lapse of input tax credit (ITC) to the tune of Rs600 crore. Due to increase in yarn prices, weavers were facing loss of Rs2 per metre on unfinished polyester fabric.
For the first time, power loom weaving industry is observing a month-long vacation. Power loom units started shutting from October 25 and will reopen only after November 25. Read More