Mar 24, 2012
SURAT: The South Gujarat Textile Processors' Association (SGTPA) on Friday decided to oppose the 7% hike in the price of natural gas supplied to industrial segment by Gujarat Gas Company Ltd ( GGCL).
Industry sources said the company issued a circular to all industrial gas users in Surat, Ankleshwar and Bharuch regarding the 7% price increase of the gas effective from April 1, 2012. The textile processors will have to pay Rs 24 per standard cubic metre (SCM) of gas.
More than 400 dyeing and printing mills in Surat are running on natural gas and their daily requirement of natural gas is pegged at between 1.5-1.6 million metric standard cubic metre per day (mmscmd).
Sources said the price hike is a direct fallout of the depleting domestic production and increase of imported gas in the company's portfolio. The price of imported gas has gone up in the last couple of months following the Iran crisis as well as due to other reasons.
"The textile industry is passing through a tough phase following the depleting demand of finished fabrics from key domestic markets in the country. The price of yarn, chemicals and other raw materials have gone up. It will be difficult for textile traders to pay high job charges for processing the textile fabrics," said a senior functionary of SGTPA.
"We have organized a meeting to chalk out a plan of action to tackle the price hike announced by the gas company," he added.
Industry sources said the company issued a circular to all industrial gas users in Surat, Ankleshwar and Bharuch regarding the 7% price increase of the gas effective from April 1, 2012. The textile processors will have to pay Rs 24 per standard cubic metre (SCM) of gas.
More than 400 dyeing and printing mills in Surat are running on natural gas and their daily requirement of natural gas is pegged at between 1.5-1.6 million metric standard cubic metre per day (mmscmd).
Sources said the price hike is a direct fallout of the depleting domestic production and increase of imported gas in the company's portfolio. The price of imported gas has gone up in the last couple of months following the Iran crisis as well as due to other reasons.
"The textile industry is passing through a tough phase following the depleting demand of finished fabrics from key domestic markets in the country. The price of yarn, chemicals and other raw materials have gone up. It will be difficult for textile traders to pay high job charges for processing the textile fabrics," said a senior functionary of SGTPA.
"We have organized a meeting to chalk out a plan of action to tackle the price hike announced by the gas company," he added.
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