Textile traders in south Gujarat are angry at plans for a new duty on the processing of cloth.

The introduction of ad valorem duty in the Union Budget for 2001-2002 will hit them hard, they say.

They have recently boycotted trading and lifting of cloth and finished fabrics, resulting in a build-up of stock with weavers.

Three sectors are involved in clothing processing - weavers, processors and traders who sell the finished goods.

While traders are up in arms about the new ad valorem duty, process houses and weavers have welcomed the move.