Ludhiana: Industry already suffering from a low phase and a sudden slight increase in price of yarn has severely impacted the industry. Manufacturers lamented that this increase in prices of yarn would lead to increase in prices of garments in the market also.
Industrialists claimed that industry is already facing many losses as condition of industry is very critical and this increase of yarn rate in Punjab would affect the industry as garments transported to other states would now decrease as rate of yarn in other states has not increased.
However, 3.3 percent value added tax (VAT) imposed on thread in Punjab is also ruining the yarn manufacturing industry here.
Since there is no VAT in states including Haryana and Rajasthan on yarn while some states have this tax not more than 2 per cent, yarn manufacturers in Ludhiana want VAT scrapped on thread so as to rescue the industry.
Taranbir Singh Jolly, shirt manufacturer said, “This is very bad for the manufacturers as industry is already facing very tough time. Manufacturers are the ones who suffered a lot as all the garments sold on credit and now increase in prices of cloth would definitely affect the customers of other states.”
While contacted, Vinod Thapar, Chairman, Knitwear Club said, “I am requesting the Textile Department to take care of these things as earlier Ludhiana is known for garment hub but now condition is not good as most of the orders were taken from other states. Rates of yarn should be controlled so that manufacturer should not suffer.”
Radhesham Ahuja, president of Yarn Dealer Association, Ludhiana said, “However rates of the yarn are not properly fixed as there is very small increase in rates of yarn. However, traders mostly increase the rates of the cloth according to the demand and supply of cloth.”
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