Home / Knowledge / News / Textiles / Lack of liquidity baffles Surat textile industry
Lack of liquidity baffles Surat textile industry
04
Nov '08
Few months back, textile industry of Surat was engulfed by severe problems, with number of manufacturers facing closure.

Processing houses in Surat mostly import raw materials like chemicals and dyestuff from China. Since the supply of these was scarce around Olympics, the processing houses were forced to cut production by 30 percent. This eventually led several weaving units into a dire state.

However, issues today are completely different.

General Secretary of Federation of Surat Textile Traders Association (FOSTTA), Devkishan Manghani, explained to Fibre2fashion, “The shortage of chemicals and dyestuff is an old problem and has been overcome. We are getting sufficient chemicals from China these days. About a month back, due to power and gas cuts the processing houses were not able to produce sufficient amount of processed fabric. This is also only a negligible obstruction now.”

Even then, Surat textile industry was unable to capitalize on the raw material price drop. Experts say that the lack of liquidity, caused by factors that are beyond a country's control, is the key reason for the situation.

Mr Manghani stated, “Due to various problems like slowdown in international economy, unexpected violence and so on, production of textile industry has been hampered. Infact, only 65-70 percent of our seasonal Diwali target was achieved this year. Nevertheless, the situation is reasonably strong. Presently, Surat alone is producing grey fabric of around three crore meter per day.”

Fibre2fashion, News Desk - India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search