Surat textile sector hit by input costs

PTI

Surat

Gujarat’s textile hub in Surat is facing mounting pressure as rising input costs linked to the ongoing West Asia conflict disrupt operations, forcing units to cut working hours and reduce production days.  Industry bodies said losses have surged to nearly ₹90–₹100 crore per day, reflecting the severity of the crisis. The South Gujarat Textile Processors Association has curtailed operations to five days a week from seven to manage escalating costs, particularly of coal and raw materials.

Several units have also reduced production cycles from 24 hours to 12 hours daily, impacting output across the value chain.  The crisis has been compounded by a labour shortage, with nearly 35% workforce deficit and over 2,000 migrant workers leaving the city in recent weeks.

The cost of imported raw materials, including man-made fibre, has risen sharply by 30–35%, further squeezing margins. Industry estimates suggest overall activity across weaving, processing and trading segments has declined by 25–30%.  Prior to the conflict, Surat produced nearly seven crore metres of fabric daily. However, output has now dropped significantly, almost halving in recent weeks, according to trade representatives.

 Despite current challenges, stakeholders expect some relief from the upcoming wedding season, which may boost demand.  However, industry leaders caution that even after stabilisation of input costs and labour availability, the sector may take two to three months to fully recover from the ongoing disruptions.