Surat, April 3 Surat, Gujarat's textile hub, is starting to feel the impact of rising input costs due to the ongoing conflict in West Asia, with several units either reducing their daily working hours or decreasing the number of days they operate.
Some officials claim that the industry is currently incurring losses of around Rs 100 crore per day.
Surat is one of India's largest centers for the production of synthetic fabrics.
The South Gujarat Textile Processors Association has decided to limit the operational days of units to five days a week instead of seven, in an effort to manage rising costs, its president Jitendra Vaktania said.
"Due to rising costs of raw materials and coal, the textile processing industry in Surat and South Gujarat is facing a crisis," he said.
Several units have also reduced their production cycles from 24 hours to 12 hours a day, impacting overall output, said Ashok Jirawala, president of the Federation of Gujarat Weavers' Welfare Association and vice-president of the Southern Gujarat Chamber of Commerce and Industry.
"The situation has become challenging, with the industry incurring losses of around Rs 90-Rs 100 crore per day," he said.
The crisis has been compounded by a shortage of labor, with industry estimates indicating a 35 per cent shortfall. More than 2,000 migrant workers have left the city in recent weeks, Jirawala added.
The earlier shortage of cooking gas cylinders had triggered worker migration, further straining operations.
The cost of imported raw materials, including synthetic fibers, has also surged by 30-35 per cent, he noted.
Vaktania said that production has declined by 25-30 per cent across weaving, processing, and trading segments.
Despite the current downturn, the upcoming wedding season is expected to boost demand and provide some relief to the sector, he noted.
"Prior to the international crisis, the industry produced nearly seven crore meters of fabric per day. However, the output has now dropped by almost half," said Champalal Bothra, national chairman of the Confederation of All India Traders.
Even after the conflict subsides and factors such as yarn prices and labor availability stabilize, the industry may take two to three months to recover, he said.
Gujarat Deputy Chief Minister Harsh Sanghavi recently held a review meeting with industry leaders in Surat and assured adequate supply of 5 kg LPG cylinders for workers.