Surat: Surat’s textile industry is facing a major crisis after around 1,000 containers carrying imported specialty yarn worth an estimated ₹250 crore were halted at Mumbai’s Nhava Sheva Port and Surat’s Hazira Port following a Gujarat High Court stay order. The Customs Department has frozen the release of the consignments, leaving traders, importers and weavers facing significant financial losses.

Industry representatives said around 500 containers are stranded at each port. The consignments contain specialty yarn imported from China, Vietnam and Indonesia for use in Surat’s textile and garment sector. Traders claim the prolonged hold-up has blocked their working capital, triggering a liquidity crunch in the market.

The crisis has been compounded by a sharp rise in domestic yarn prices, with local manufacturers reportedly increasing rates by ₹15-20 per kg over the past 10 days.

The dispute stems from a Central Government notification issued on November 11 permitting the import of specialty yarn to support the textile industry’s growth and global competitiveness. Following the notification, several Surat traders placed orders with overseas suppliers.

However, five major spinning companies challenged the notification in the Gujarat High Court, which subsequently granted a stay, prompting Customs authorities to stop clearance of the imported consignments.

Traders allege the stay was granted without representation from weavers and importers who are directly affected. They argue that the consignments had been ordered months earlier, with advance payments and letters of credit already processed through banks.

With the shipments stuck at ports, importers are also incurring hefty demurrage and detention charges from shipping lines and port authorities, with daily losses running into lakhs of rupees.

Amid mounting concerns, a delegation of more than 15 leading yarn traders met office-bearers of The Southern Gujarat Chamber of Commerce and Industry (SGCCI) and sought urgent intervention. The traders warned that prolonged delays could disrupt textile production and affect thousands of workers dependent on the industry.

Backing the traders, SGCCI President Ashok Jirawala said the Chamber would support efforts to secure relief for consignments ordered before the High Court stay. “The consignments imported before the stay order should be released by adopting a humanitarian and practical approach,” he said. DeshGujarat