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Surat weavers sleepless over soaring yarn prices
Nov '10
The unprecedented rise in raw material prices is giving sleepless nights to the entrepreneurs in the textile hub of Surat, Gujarat, doe to which several small firms without adequate financial muscle have downed their shutters.

Surat is famous for synthetic fabrics and embroidery and around 30 million meters of raw fabric and 25 million meters of fabrics are processed are produced daily in the city. There are around 400,000 powerlooms and 400 fabric process houses in the so-called textile hub of India.

The recessionary phase of the previous two years had taken the wind out of the textile sector in Surat and when the markets were giving an impression of stabilizing, the ever-rising prices of raw materials, is now turning in to loss-making proposition for many from the textile city.

While, speaking to Mr Ashok Zirawala, President of the Federation of Textiles Traders and also of the Weavers Association, said, “The textile industry in Surat is going through a severe slowdown. The only fabric in demand is the jacquard quality; otherwise there is negligible demand for the other varieties produced in Surat. And to make matters worse, yarn prices are increasing incessantly”.

Mentioning about the challenges faced by the sector in Surat, he remarked, “Along with biggest challenge of rising raw material prices, there is no demand for fabrics, due to which prices of our finished materials have fallen and now, we are not even able to meet, even the cost of production, which has turned in to a big dilemma for the weavers, and who in turn have turned pessimistic about the new year, which is just around the corner”.

Fibre2fashion News Desk - India

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