A Gujarat High Court stay order has disrupted Surat’s textile sector, with nearly 1,000 containers of imported specialty yarn valued at about Rs. 250 crore (US $ 26.25 million) held up at Mumbai’s Nhava Sheva Port and Surat’s Hazira Port.
The issue arose after the Central Government issued a notification on 11th November allowing the import of specialty yarn to support the domestic textile industry.
Following the announcement, Surat traders placed orders with overseas suppliers and completed advance payments and other banking formalities.
However, five major spinning companies challenged the notification in the Gujarat High Court, leading to a stay order that prompted Customs authorities to halt the release of the imported consignments at the ports.
Traders further claim that the stay order was issued without hearing the views of weavers and importers, who are among the most affected stakeholders.
Industry representatives noted that around 500 containers are stranded at each port. The detained cargo contains high-quality specialty yarn imported from China, Vietnam and Indonesia for use in Surat’s textile and garment sector.
Traders claim that the prolonged hold-up has blocked their working capital, triggering a liquidity crunch in the market.
In response to the growing crisis, a group of more than 15 prominent yarn traders met representatives of The Southern Gujarat Chamber of Commerce and Industry (SGCCI), urging immediate action to resolve the issue.
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