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Textile hub hit by low fabric production
02
Jan '10
In the wake of low demand and the growing prices of raw materials, weaving unit processors in Surat have been compelled to scale down production of synthetic grey fabric by 20-30 percent. Sales turnover of the industry has reduced almost to half, in recent days.

Production of synthetic gray fabric from the textile industry in Surat which has a turnover of Rs. 300 billion, has been reduced by 10-15 million meters per day in Surat, which used to weave 30-40 million meters of this fabric per day. Volume of fabric, generated by around 40,000 small and big textile merchants used to be of Rs. 1.1 billion per day. But demand fall, shrunk this volume to Rs. 0.5-0.6 billion a day.

Manufacturers of this fabric are deeply impacted by the price hike in raw materials, as many of the power-looms out of around 800,000 established in and around Surat shut down night shifts, while rest of the others have kept their units closed for a day or two.

Annual turnover of the industry from synthetic finished goods accounts for more than Rs. 300 billion.

Fibre2fashion News Desk - India


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