Input Costs Skyrocket
The Middle East conflict is severely impacting Gujarat's textile processing hub in Surat. Essential raw material costs, including coal and imported man-made fibers, have jumped 30-35%. This sharp rise is pushing factories to the brink and forcing tough operational choices.
Production Curtailed
With costs soaring, many textile processing units are slashing daily working hours, moving from 24-hour operations to just 12. Some are also cutting production days to five a week, down from seven. While these steps aim to limit losses, they severely impact overall output.
Sharp Losses and Labor Shortages
Industry leaders estimate daily losses for the sector are between Rs 90 crore and Rs 100 crore. Output has dropped nearly in half, from seven crore meters of fabric daily to about 3.5 crore meters. Adding to the crisis is a critical labor shortage, with a reported 35% shortfall. Over 2,000 migrant workers have left the city recently. This labor crunch comes after previous issues with cooking gas cylinder availability.
Path to Recovery Uncertain
The upcoming wedding season is expected to boost demand, but industry veterans warn recovery will be slow. If tensions ease and prices stabilize, it could still take two to three months for the industry to return to pre-crisis levels. Gujarat Deputy Chief Minister Harsh Sanghavi has met with industry leaders and promised action, including ensuring adequate LPG cylinder supply for workers.