After High Court Stay Order, 1000 Containers Held at Nhava Sheva and Hazira Ports, Local Yarn Prices Rise by 15 to 20 Rupees
Surat: The textile industry of Surat, Asia’s largest textile hub, is once again facing a legal and commercial crisis. High-quality specialty yarn imported from abroad has become stuck at Mumbai’s Nhava Sheva Port and Surat’s Hazira Port due to a stay order from the Gujarat High Court.
The customs department has refused to clear these containers, putting severe financial pressure on Surat’s yarn traders and the textile industry.
According to industry sources, about 1000 containers have been held at both ports, containing imported yarn worth approximately 250 crore rupees. Of these, 500 containers are stuck at Nhava Sheva Port and 500 at Hazira Port. This yarn was imported from several countries, including China, Vietnam, and Indonesia.
Meanwhile, local manufacturers have increased yarn prices by 15 to 20 rupees per kilogram over the past 10 days, further worsening difficulties for weavers and traders.
Import Began After Central Government Approval
The entire dispute began with a notification issued by the central government on November 11. Under this notification, traders in Surat were allowed to import special quality yarn from abroad to strengthen the local textile industry for global competition.
Following government approval, traders in Surat placed large orders with foreign suppliers and issued advance payments and letters of credit through banks. The goods then arrived in India by sea, but due to the High Court stay, the containers got stuck at the ports.
Five Major Spinning Companies Challenged in High Court
According to information, five major spinning companies in the country challenged this government decision in the Gujarat High Court. Yarn traders allege that these companies obtained a unilateral stay order to protect their business interests, while importers and weavers were not given an opportunity to present their side.
After the High Court stay order, the customs department stopped all containers. As a result, traders are having to pay lakhs of rupees daily in demurrage and detention charges.
Employment Crisis Looms Over Textile Industry
A delegation of over 15 major yarn traders from Surat approached ‘The Southern Gujarat Chamber of Commerce and Industry’ (SGCCI) regarding this serious issue and briefed them on the industry’s situation. Traders warned that if the containers are not released soon, Surat’s textile industry could come to a halt, putting thousands of workers’ jobs at risk.
The Chamber of Commerce president, Ashok Jirawala, supported the traders and said that the containers under restriction should be released soon with a humanitarian approach to save both the industry and employment.
Nhava Sheva Port
Nhava Sheva Port, officially known as Jawaharlal Nehru Port (JNPT), is India’s largest container port, located in Navi Mumbai, Maharashtra. Established in 1989 to relieve pressure on the older Mumbai Port, it was named after India’s first Prime Minister and has since become a crucial hub for international trade, handling over half of the country’s containerized cargo. The port’s strategic location and modern infrastructure have driven significant economic growth in the region, making it a key gateway for Indian exports and imports.
Hazira Port
Hazira Port is a major deep-water port located near Surat in the Indian state of Gujarat, situated on the Gulf of Khambhat. Originally developed in the 1990s by the Gujarat government, it has since been operated by the Adani Group and expanded to handle a wide range of cargo, including crude oil, liquefied natural gas (LNG), and container shipments. The port plays a crucial role in India’s trade and industrial growth, particularly supporting the nearby Hazira industrial area and the country’s energy sector.
Gujarat High Court
The Gujarat High Court is the highest judicial body in the state of Gujarat, India, established on May 1, 1960, following the bifurcation of the Bombay State. Originally located in the old Secretariat building in Ahmedabad, it later moved to its current, iconic building on the Sabarmati Riverfront, designed with a blend of modern and traditional Indian architecture. The court has played a significant role in the state’s legal history, handling landmark cases and upholding the rule of law in the region.
Surat
Surat is a historic port city in the Indian state of Gujarat, known for its significant role in global trade during the Mughal era, particularly in textiles and diamonds. It was a major hub for the British East India Company and other European traders in the 16th and 17th centuries, and its port served as the primary departure point for pilgrims traveling to Mecca. Today, Surat is a thriving industrial center, famous for its diamond cutting and polishing industry, as well as its textile manufacturing.
Asia’s largest textile hub
Asia’s largest textile hub is the city of Surat in Gujarat, India, renowned for its massive textile and synthetic fiber industry. Historically, Surat was a major port and trading center during the Mughal era, famous for its silk and cotton fabrics exported globally. Today, it dominates the global market for synthetic textiles, particularly polyester and nylon, earning the nickname “The Silk City.”
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over 3,500 years. It was home to ancient dynasties such as the Zhou, Qin, and Tang, which contributed to the development of writing, philosophy, and the Great Wall. Today, China is a vast country known for its rich cultural heritage, including iconic sites like the Forbidden City and the Terracotta Army.
Vietnam
Vietnam is a Southeast Asian country with a rich history shaped by centuries of Chinese influence, French colonization, and the Vietnam War. Its cultural heritage is reflected in ancient temples, bustling cities like Hanoi and Ho Chi Minh City, and iconic landscapes such as Ha Long Bay. Today, Vietnam is known for its vibrant traditions, diverse cuisine, and resilient spirit.
Indonesia
Indonesia is a Southeast Asian archipelago nation with over 17,000 islands, known for its rich cultural diversity and history as a major trade hub for spices and goods. Its history includes powerful Hindu-Buddhist kingdoms like Srivijaya and Majapahit, followed by centuries of Dutch colonial rule, and a struggle for independence proclaimed in 1945. Today, Indonesia is the world’s largest Muslim-majority country, celebrated for landmarks like Borobudur temple and Bali’s unique Hindu culture.
