India’s textile hub Surat is witnessing a sharp slowdown as global tensions and rising input costs begin to hit production. The ongoing geopolitical instability in the Middle East has triggered inflationary pressures, leaving thousands of weavers and factory units struggling to sustain operations.

Industry leaders warn that the situation has become critical, with daily losses mounting and production levels dropping significantly.

Production Cuts and Shorter Work Cycles

Textile units across Surat and South Gujarat have started scaling back operations to cope with rising costs. Several factories have:

• Reduced working days from seven to five per week
• Cut daily production shifts from 24 hours to nearly 12 hours

According to Jitendra Vaktaniya of the South Gujarat Textile Processors Association, the surge in raw material and coal prices has forced units to take these tough measures.

Industry Losing Up to ₹100 Crore Daily

The financial impact has been severe. Ashok Jirawala, who is also associated with the Southern Gujarat Chamber of Commerce and Industry, stated that the textile sector is currently incurring losses of around ₹90–100 crore every day.

He noted that reduced production cycles, combined with falling demand and operational challenges, have significantly hurt profitability.

Labor Shortage Deepens the Crisis

Adding to the industry’s troubles is a growing shortage of workers.

• Workforce availability has dropped by nearly 35%
• Over 2,000 migrant workers have reportedly left Surat in recent weeks

The initial trigger for this exodus was a shortage of essential supplies such as cooking gas cylinders, which made it difficult for workers to continue living in the city.

Raw Material Prices Surge

The cost of imported inputs, especially man-made fibers, has risen sharply—by nearly 30–35%. This increase has affected all segments of the textile value chain, including weaving, processing, and trading.

Industry estimates suggest that overall activity in these segments has declined by 25–30%, further compounding the slowdown.

Production Drops Nearly by Half

According to Champalal Bothra of the Confederation of All India Traders, Surat’s textile production has taken a major hit.

• Earlier output: 70 million meters of fabric daily
• Current output: Nearly 50% lower

This sharp decline highlights the scale of disruption faced by one of India’s largest man-made fabric hubs.

Hope from Wedding Season Demand

Despite the ongoing crisis, industry stakeholders remain cautiously optimistic. The upcoming wedding season is expected to boost demand for textiles, which may provide temporary relief.

However, experts believe this may only offer short-term support unless underlying issues are resolved.

Recovery Could Take Months

Even if the geopolitical situation stabilizes and supply chains normalize, the industry may take time to recover.

Experts estimate that:

• Stabilizing raw material prices
• Restoring labor availability
• Resuming full production capacity

…could take 2 to 3 months after conditions improve.

Government Steps In

In response to the crisis, Harsh Sanghavi held discussions with industry representatives in Surat. The government has assured adequate supply of essential resources, including small LPG cylinders for workers, to help stabilize the situation.