Surat: Federation of Surat Textile Traders' Association (FOSTTA) has written to chief minister Vijay Rupani for considering setting up of a garment hub in the city to regain the glitter of man-made fabric (MMF) hub lost due to severe impact of Goods Services Tax (GST) on the sector.
In a letter addressed to the chief minister, FOSTTA raised concerns about the downfall in production of man-made fabrics by at least 40 per cent and issues of job losses in textile markets, power loom weaving units and processing units due to the impact of the GST.
FOSTTA said the state government must consider setting up of a garment hub under its garment policy announced on October 16, 2017.
Highlighting the benefits of the garment hub, FOSTTA stated that setting up of the garment hub will allow power loom weavers and textile traders to sail through the impact of the GST. The raw fabrics manufactured by the weavers will be consumed in garment factories set up under the incentivised scheme of the state government.
The raw material procured by garment manufacturers will be cheaper compared to other states and this will give an edge to the manufacturers in attracting wholesalers from across the country and abroad. The export of garments will get a boost and also the manufacturing of shirts, T-shirts, kurtis, lehngas, ladies gown, suit, salwar kameez etc will get a boost.
FOSTTA secretary Champalal Bothra told TOI, "It is need of the hour that the textile industry in the city forward integrate and venture into garment manufacturing. Surat produces finest fabrics in the country and garment units in the city will have a win-win-situation. We have requested the new government in the state to consider setting up of a garment hub in the city."
