With textile traders downing shutters for three more days following the all India strike announced by traders from Tuesday, production of grey fabrics has taken a hit in the country's largest man-made fabric (MMF) sector. Production of grey fabric has decreased by almost 55 per cent in the last fortnight due to the textile traders' agitation against goods and services tax on fabrics. The daily production of polyester fabrics is pegged at 4 crore meters per day.

Most powerloom units in Bhestan, Unn, Sachin, Katargam and Ved Road are operating their units in single shift for the last many days. Traders had already observed two days strike in between. Sachin Weavers Association president Mahendra Ramoliya says 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. There is no opposition on 5 per cent GST in the weaving sector but the central government must provide refund for the accumulated tax credit. If refund will not be made the entire weaving sector will collapse after July 1.

Southern Gujarat Chamber of Commerce and Industry (SGCCI) secretary Devesh Patel, says a delegation from SGCCI and textile industry had met deputy chief minister Nitin Patel. They need increase import duty on Chinese fabrics and provide refund of accumulated tax credit. He said there cannot be two rules in the textile sector. If the textile processors are eligible for refund of accumulated tax credit, the powerloom weavers should also be considered for the same. 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.