Representational.
Surat: Gujarat's textile hub in Surat has started feeling the pinch of rising input costs due to the ongoing West Asia conflict, with several units either curtailing their daily working hours or bringing down their active production days, PTI reported.
Some office-bearers claimed that the industry was currently facing losses of around Rs 100 crore every day.
Surat city is among India's largest centres for man-made fabric production.
The South Gujarat Textile Processors Association has decided to limit the operational days of units to five days a week instead of seven in a bid 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 scaled down 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 labour shortage, 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 man-made fibre, has also surged by 30-35 per cent, he noted.
Vaktania said the work has declined by 25-30 per cent across weaving, processing and trading segments.
Despte 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 metres 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 labour availability stabilise, 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 an adequate supply of 5 kg LPG cylinders for workers.