SGTPA Retains Up To 15% Job Work Charge Hike, FOSTTA Calls Trader Meeting
The South Gujarat Textile Processors Association (SGTPA) on Tuesday decided to retain its recently announced increase of up to 15% in job work charges, despite a representation from the Federation of Surat Trade and Textile Associations (FOSTTA) seeking its withdrawal or reduction ahead of the festive season.
The decision has intensified differences between textile processors and traders in Surat, with FOSTTA now calling a meeting of presidents and secretaries of textile markets and trade associations on Wednesday to chalk out a strategy to oppose the hike.
Representatives of more than 200 textile markets have been invited to the meeting, where traders are expected to discuss the impact of higher processing charges on business and work out a course of further action.
The SGTPA meeting on Tuesday was convened following FOSTTA’s representation, which urged processors to reconsider the timing of the increase. FOSTTA had pointed out that textile trade activity typically gains momentum ahead of the festive season, with traders under pressure to execute pending orders and ensure timely deliveries.
FOSTTA had also sought the withdrawal or reduction of the increase, arguing that higher processing charges could add to the cost burden on traders and disrupt the movement of grey and processed fabrics during the peak business period.
However, SGTPA members maintained that the increase was necessary in view of the sharp rise in operating costs faced by processing units. The association cited a reported increase of around 20% in coal prices over the past week as one of the latest factors adding to the cost burden.
Coal is a key fuel used in boilers at textile processing units, and the rise in prices has significantly affected processing costs, according to industry representatives.
The latest decision follows SGTPA’s August 27 meeting, at which the association reviewed the impact of rising input and operating costs across the processing sector and decided to increase job work charges by up to 15%.
Tuesday’s meeting was held specifically to review the decision following FOSTTA’s representation. However, processors decided against rolling back the increase.
Instead, SGTPA has indicated that it may consider another increase in job work charges, with a further meeting scheduled for next week to review the cost situation and decide on the issue.
The development has prompted FOSTTA to mobilise textile traders across Surat. Wednesday’s meeting is expected to bring together representatives of a large number of textile markets and trade bodies to build a common position against the increase and finalise a strategy for further action.
The dispute comes at a critical time for Surat’s textile industry, when trading activity normally picks up ahead of the festive season and both traders and processors face pressure to manage costs while meeting delivery commitments.
