Weavers reel under post-GST hike in yarn prices

The price hike has been caused by rising raw material prices such as PTA and MEG

A post Goods and Services Tax (GST) hike in prices of fully drawn yarn (FDY) and partially oriented yarn (POY) by 5-7% has sent the synthetic textile weaving industry reeling under margin pressures. The price hike has been caused by rising raw material prices such as purified terephthalic acid (PTA) and monoethylene glycol (MEG) which have spiked on the back of rising crude prices.

However, at a time when several weavers, processors and traders are yet to register under GST, along with lack of clarity over accumulated duty credit and the reverse charge mechanism (RCM), decentralised powerlooms and textile