Surat: The country's largest man-made fabric (MMF) industry in the city is staring at yet another slowdown post-demonetization. The front-line spinners have increased yarn prices by almost Rs 30 per kilogram in the last one month.If the leaders in powerloom sectors are to be believed then this is one of the highest ever increases in yarn prices by the spinners in the history.After demonetization, the industry suffered major losses due to closure of 70 per cent of weaving units and now with some spinners setting up a cartel and increasing rates, the industry is staring at huge losses.Post-demonetization, the production of polyester fabric had fallen by almost 75 per cent with over 80 per cent of weaving units downing their shutters and textile workers moving out of the city.As per an estimate, there are around 6.5 lakh powerloom machines, manufacturing around four crore meter of fabric per annum worth over Rs30,000 crore. Post-demonetization, production of fabric reduced to just 1.5 crore meter due to closure of a majority of powerloom units.Powerloom weavers said the industry was preparing for the upcoming marriage season in summer. The weavers wanting to replenish their yarn stock are in deep trouble with increase in yarn prices by the spinners."There is simply no rationale behind such a stiff increase in yarn prices by the spinners. There is no demand for the goods in the local market, still the spinners have increased prices. We smell something fishy as the spinners are operating a price cartel to pressurize the weavers. The industry is going to collapse with such a huge price hike, which will result in huge amount of joblessness in the sector," said Federation of Gujarat Weavers Association president Ashok Jirawala.Sachin Weavers Association president Mahendra Ramoliya said, "The industry can't survive if the spinners try to rule the market through a price cartel. We request the textile ministry to intervene or else lift anti-dumping duty on import of yarns."

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