Surat: South Gujarat Textile Processors Association (SGTPA) on Tuesday decided to maintain the recently announced increase of up to 15% in job work charges and indicated that further hikes may be considered in the near future due to rising input costs.The meeting was convened after a representation from the Federation of Surat Trade and Textile Associations (FOSTTA), which had urged processors to reconsider the timing of the increase ahead of the festive season when demand is high and traders are under pressure to deliver pending orders.FOSTTA called for a meeting of textile trade representatives to plan strategy to oppose the hike in charges by textile processors.Earlier, FOSTTA office-bearers told SGTPA that an immediate rise in processing charges would strain the supply chain at a time when grey and processed fabric movement typically accelerates. They sought withdrawal or reduction of the hike to ensure smoother order execution during the peak period.However, SGTPA members reiterated that cost pressures have intensified, particularly after coal prices reportedly rose by around 20% over the past week. Coal remains a key fuel for boilers used in textile processing units, and the association argued that the escalation has impacted operational expenses, making the earlier revision necessary and potentially insufficient.Earlier on Aug 27, SGTPA had held a meeting to review the impact of rising costs across the processing sector. After discussions, the association decided to raise job work charges by up to 15%. Tuesday’s meeting, called to review that decision following FOSTTA’s representation, did not roll back the increase. Instead, processors concluded the discussion with a plan to hold another meeting next week to consider a further hike in charges.Reacting to SGTPA’s stance, FOSTTA has called a meeting of presidents and secretaries of textile markets and trade bodies in Surat on Wednesday. The forum aims to build a consensus among textile traders to oppose the processing charge hike and to finalise a strategy for further action. In the meeting, representatives of over 200 textile markets have been called by FOSTTA.
