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Demand for gray fabric falls, prices too follow trend
Sep '10
Since the last one week, processing factories and traders in Surat have either reduced or totally stopped purchasing gray fabrics from the powerloom factories, which has led to a rise in inventories of gray fabrics with these powerloom units.

This in turn has also led to reduction in prices by Rs 1-1.50 per meter in the last few days. Keeping the upcoming festival season in mind, these weavers were running their units at full capacities, but now, this new development has taken them by surprise.

However, a few of the weavers from this textile hub of India are optimistic that, the situation will improve in the coming days, but a few have decided to stop new purchases of yarn, till the situation shows an uptrend.

Though there have been sporadic inquiries from the traders and processing factories in the last few days, the buying offers are too low, for the weavers to strike a deal. The biggest impact in demand has been felt by the plain gray fabric variety.

Plain gray fabric accounts for nearly 80 percent of the 20 million meters of fabric weaving capacity of Surat. However with the upcoming diwali festival and wedding season in sight, the weavers do not seem to be duly perturbed and consider the current developments as a short term trend.

Fibre2fashion News Desk - India

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