Surat's Textile Industry Faces Crisis Amid West Asia Conflict
West Asia conflict hits Surat's textile biz on higher costs, fewer workdays
Business Standard
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The ongoing conflict in West Asia is severely impacting Surat's textile industry in Gujarat, India, leading to daily losses of approximately ₹100 crore (roughly $12 million USD). Many textile units are reducing operational days and production hours due to rising costs and a labor shortage, exacerbated by recent worker migration.
- 01Surat's textile industry is losing around ₹100 crore daily due to rising costs.
- 02Operational days have been cut from seven to five per week.
- 03Production cycles are reduced from 24 hours to 12 hours daily.
- 04A 35% labor shortage has worsened the situation, with over 2,000 workers leaving.
- 05Despite current challenges, the upcoming wedding season may boost demand.
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The textile industry in Surat, Gujarat, is grappling with significant challenges due to the ongoing conflict in West Asia, incurring losses estimated at ₹100 crore (approximately $12 million USD) daily. The South Gujarat Textile Processors Association has announced a reduction in operational days from seven to five per week to manage escalating costs. Additionally, many units have cut their production cycles from 24 hours to 12 hours a day, further impacting overall output. The industry is facing a 35% labor shortage, with over 2,000 migrant workers leaving the city recently due to earlier shortages of cooking gas cylinders. The cost of imported raw materials, particularly man-made fibers, has surged by 30-35%, contributing to the crisis. Despite these setbacks, industry leaders hope that the upcoming wedding season will provide a boost in demand. However, recovery may take two to three months even after the conflict subsides and conditions stabilize.
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The crisis is leading to significant financial strain on textile businesses, which may affect employment and local economies in Surat.
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