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Winter blues grip Surat textile industry

03
Jan '12
One of the biggest textile hubs of India – Surat has cut down production of its weaving and fabric processing activities till demand perks up again. To add to it woes, production costs have increased between 35-40 percent in the last few months, with marginal increase in sales realizations.

Many of the fabric weaving and processing factories have either cut down the number of shifts or reduced working days. In normal times, around 400 process houses in the textile hub together churn out thirty million meters of fabrics per day.

The reason behind the production cut down is that costs of raw material, power, fuel and gas have increased drastically. And, due to oversupply in the market, we are not able the match the costs, says Mr. Pramod Chaudhary, President - South Gujarat Textile Processors Association (SGTPA).

However, Mr Devkishan Manghani, President of Federation of Surat Textile Traders Association (FOSTTA) begs to differ.

He says, “The reason behind the production cut down is firstly because they do not have sufficient labor. Secondly, cost of material has also increased. So, production has been cut down, so that demand increases. The situation is contrary to the laws of economics. We had a meeting with some process houses, who are not planning to cut production”.

Providing more details he adds further by saying, “Besides, another reason is the increasing cold in the north, west and eastern regions. The winter season is expected to extend till February. So, till the climate does not change, the demand in Surat will not pick up”.

Mr Chaudhary adds, “Production has been cut by around 20 percent from the earlier 30 million meters per day. We are trying to match demand and supply so that everyone can match their costs and increase their prices”

Mr Manghani explains, “Fabric output is down 30 percent, but so far it has not affected traders as the demand is also currently slow.

Fibre2fashion News Desk - India


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