SURAT: Man-made fibre (MMF) manufacturers in the city may face action from Competition Commission of India as Southern Gujarat Chamber of Commerce and Industry (SGCCI) and yarn consumers -powerlooom weavers - have submitted evidence of price fixing and supply control by a few leading yarn manufacturers.

A delegation of SGCCI office-bearers and a few members from weaving sector called upon Ashok Chawla, chairman of CCI, who was in Ahmedabad to address a lecture series on 'Competition, Economic Policy and Common Man'.

They submitted a memorandum to the CCI chief and demanded a thorough investigation against the leading yarn manufacturers for fixing yarn prices and controlling the supply in Surat market after Central government extended anti-dumping duty on all types of yarn for another five years.

SGCCI president Paresh Patel told TOI, "The CCI has started investigation against the yarn manufacturers and we being the apex body of trade and commerce in south Gujarat, it is our responsibility to support powerloom weavers. We have come out with a detailed list of yarn prices offered by the yarn manufacturers."

According to Patel, the textile industry is passing through a tough phase but the yarn manufacturers are still harassing powerloom weavers by unnecessarily increasing yarn prices. Its prices have skyrocketed after the government extended anti-dumping duty on all types of yarn for five years.

"The evidence has been submitted to the CCI. Now we are awaiting the outcome of the investigation by the CCI against the yarn manufacturers," said Patel.

Jun 22, 2012, 10.56PM IST

Melvyn Thomas, TNN

Source: timesofindia.indiatimes.com