- Rising input costs from Middle East conflict hit Gujarat's textile hub hard
- Surat's textile units cut workdays from seven to five to manage expenses
- Production hours reduced from 24 to 12 hours daily amid cost and labor issues
The on-going Middle East war has begun to bite Gujarat's textile hub with sharply rising input costs triggered by the conflict. Several units either curbing their daily working hours or decreasing their active production days.
As per some of the office-bearers the industry has been facing losses of around Rs 100 crore every day. Surat city is among India's biggest centres for man-made fabric production.
The South Gujarat Textile Processors Association has decided to limit the operational days of units to five days a week instead of seven in a bid to manage rising costs, its president Jitendra Vaktania told media.
"Due to rising costs of raw materials and coal, the textile processing industry in Surat and South Gujarat is facing a crisis," he said.
Several units have also scaled down production cycles from 24 hours to 12 hours a day, impacting overall output, said Ashok Jirawala, president of the Federation of Gujarat Weavers' Welfare Association and vice-president of the Southern Gujarat Chamber of Commerce and Industry.
"The situation has become challenging, with the industry incurring losses of around Rs 90 Rs 100 crore per day," he said.
The crisis has been compounded by a labour shortage, with industry estimates indicating a 35% shortfall. More than 2,000 migrant workers have left the city in recent weeks, Jirawala added.
The earlier shortage of cooking gas cylinders had triggered worker migration, further straining operations.
The cost of imported raw materials, including man-made fiber, has also surged by 30-35%, he noted.
Vaktania said the work has declined by 25-30% across weaving, processing and trading segments.
Despite the current downturn, the upcoming wedding season is expected to boost demand and provide some relief to the sector, he noted.
"Prior to the international crisis, the industry produced nearly seven crore metres of fabric per day. However, the output has now dropped by almost half," said Champalal Bothra, national chairman of the Confederation of All India Traders.
Even after the conflict subsides and factors such as yarn prices and labour availability stabilise, the industry may take two to three months to recover, he said.
Gujarat Deputy Chief Minister Harsh Sanghavi recently held a review meeting with industry leaders in Surat and assured adequate supply of 5 kg LPG cylinders for workers.
(With inputs from PTI)
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