Ahmedabad’s textile weaving and processing industry is facing mounting pressure as rising raw material and operational costs continue to impact production, profitability, and market demand. Industry stakeholders report that sharp increases in cotton, cotton yarn, coal, and chemical prices over the past three months have significantly raised manufacturing costs across the textile value chain.
The surge in input costs has led to higher fabric prices, making grey fabric more expensive for buyers and reducing overall market activity. As a result, several weaving and processing units in Ahmedabad are currently operating at only around 50% of their installed capacity.
Industry sources indicate that the costs associated with key processing inputs, including coal and colour chemicals used in dyeing, printing, and finishing operations, have risen considerably. Although processing charges have been increased by approximately 5% to 7%, businesses say the adjustment has not been sufficient to offset the higher expenses.
To minimise losses and manage inventory levels, some processing units have started remaining closed for one or two days each week. The slowdown has created concerns among small and medium-sized enterprises that depend on a steady flow of orders to sustain operations.
Market uncertainty has also prompted traders to adopt a cautious purchasing strategy. Many buyers are limiting procurement due to fears that a future decline in prices could leave them with costly inventories and financial losses. This conservative approach has led to a noticeable drop in demand for grey fabric, directly affecting production schedules and business activity across the sector.
In addition to rising costs, the industry is grappling with a labour shortage, which is further complicating operations. Unit owners say that weak order books and irregular production schedules are making it increasingly difficult to retain workers.
Commenting on the situation, Bharat Chhajer, former Chairman of The Powerloom Development and Export Promotion Council (PDEXCIL), said, “The industry is under pressure from every side, whether it is related to cotton, yarn, coal, chemicals or labour. If immediate relief is not provided, many units may find survival difficult. There is also a short supply of cotton yarn because spinning units have higher export commitments. Ahmedabad and surrounding areas have around 200 weaving units.”
With raw material prices remaining elevated and demand showing signs of weakness, industry participants are calling for timely support measures to stabilise operations and protect the competitiveness of Ahmedabad’s textile sector.
