Weaving and processing units in Surat are struggling with raw material shortages and their rising prices. Prices of coal and lignite in the city have increased by over 100 per cent, electricity bills have surged by about 10-15 per cent while labor charges are surging by 12 per cent.

Ashok Badani, Owner of a processing unit says, prices of polyester yarn in the city have jumped by over 30 per cent in the last six months. This is making it difficult for weavers to buy yarn in large quantities, he adds. The steep rise in inputs costs is also disrupting production activities with most units running one shift 12-hour shift a day, adds Lalit Pipalya, Weaver.

Before the pandemic, weavers processed nearly 40 million metres of fabric per day. But now, they process only about 30 million metres a day. This threatens a 65 per cent decline in cluster’s turnover this year. Weavers’ operating margins are also being squeezed as they do not pass all additional costs to consumers. However, this has led to a 50 per cent decline in their own profit margins. Over 75 per cent of the 50,000 plus weaving units and more than 400 textile processing houses in Surat are relatively small units or MSMEs. Jitendra Vakharia, President, South Gujarat Textile Processors Association (SGTPA), says, their small capacities make it harder for them to absorb the sudden hike in raw-materials and other costs.

The Surat textile cluster provides direct employment to over two million people in the city.