Hit hard by the second wave of corona, Surat’s MMF sector looking for the government’s moratorium.

Surat : When the country’s largest Man-Made Fabric (MMF) industry is passing from tough phase due to coronavirus pandemic, the powerloom weavers and textile processors have turned to the Central Government for announcing moratorium to support the textile sector in the time of crisis.

According to the industry sources, new orders from the wholesalers in different parts of the country have decreased significantly due to the second wave of coronavirus and that the buyers are not clearing the payments due from the last six months. Last year, during the coronavirus induced lockdown, the government had announced moratorium to support the industries. However, the same has not been announced during the second wave of coronavirus.

Powerloom weavers said they  had to face huge losses due to the second wave of coronavirus in April. It was time for weddings and school uniform.

Mayur Golwala, leader of powerloom weaving industry told TBT, “As the third wave of coronavirus is expected, weavers and processors are not getting new orders. It is becoming difficult for the weavers to pay the wages of workers. It is our request to the government to provide relief to the textile sector to tide over the gruesome situation”

Banking expert Dr. Jatin Naik said the Central government announced moratorium for the industries as the lockdown was announced last year. During the second wave, the lockdown was voluntary. Therefore, neither the government nor the RBI declared moratorium for MSMEs”

According to Naik, under the restructuring scheme, borrowers can extend the loan period and reduce the installment amount, but most entrepreneurs do not have income to do so. However, reducing the installment amount does not solve their problem.  As a result, such entrepreneurs are forced to take another loan from banks, and ultimately land up repaying the old and new loans simultaneously.  Traders and industrialists are now trying to make a deal out of it, hoping that everything will go smoothly once normalcy would return.