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Surat weaving units struggling to stay afloat
16
Jul '08
Surat, in Gujarat, one of the chief textile cities in India, has been feeling the heat of international trade scenario for some time now. Weaving and processing industry, in particular, is rapidly weakening.

It has been noted that most of the weaving plants in Surat are in dire state and several are facing closure since processing units have cut down production by nearly 30 percent.

Federation of Surat Textile Traders Association (FOSTTA), General Secretary, Mr Devkishan Manghani, told Fibre2fashion, "For past 3-4 years textile industry has been dependent of dyes and chemicals that are imported from China at a fairly cheap price. However, with most Chinese dyes and chemical factories forced to close down for Olympics, there is a serious shortfall in supply, leading to immense price hike."

He said that this situation not only has cut into profits but has also affected the timely delivery of the products. Manufacturers are unable to meet their client's deadlines because a particular dye is not available. Rising oil and gas prices are also adding to the problems.

Mr Manghani explained, "The Gas Companies have stopped supplying fuel for past few days, which is affecting the industries tremendously. This has caused a loss of approximately Rs200-250 millions per day. Weavers will be in severe trouble in next 15-20 days because production of grey fabric will increase but that of finished product will decrease."

There are about seven lakh weaving looms in and around Surat, which, together, process around 2500 million metres of grey fabric per day .

He stressed that steps needed to be taken, especially to ensure continuous supply of fuel.

Fibre2fashion News Desk - India

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