Increasing raw cotton and yarn prices are compelling textile companies in Gujarat to underutilize their production capacity. A few mills in the state have also shut down operations due to lack of fresh orders owning to the price rise, as per a Textile Today report. As per Saurin Parikh, President, Spinners Association of Gujarat and Founder, Pashupati Cotspin, nearly 120 spinning mills in Gujarat are running at a little over 50 percent capacity currently. Since weavers and international buyers have refused to pay higher prices for cotton yarns, spinning mills in the state have not been able to increase their finished goods’ prices, he adds.

Chintan Thaker, President, Welspun Group affirms, two of the company’s units in the state are operating at 60 per cent capacity as international buyers have refused to pay for the increased prices. Many apparel units in the state are also facing production cuts. Vijay Purohit, President, Gujarat Garment Manufacturers Association (GGMA) says, high yarn prices has made it difficult for manufacturers to operate their units.