Rising cotton, yarn, coal and chemical prices are increasing production costs, weakening fabric demand and putting pressure on weaving and processing units.
Ahmedabad’s textile weaving and processing industry is facing growing cost pressures. Rising raw material and operating expenses are affecting production, profitability and market demand.
Industry stakeholders report sharp increases in cotton, cotton yarn, coal and chemical prices over the past three months. As a result, several weaving and processing units are operating at around 50% of their installed capacity.
Rising Input Costs Put Pressure on Textile Units
Higher input costs have pushed up fabric prices, making grey fabric more expensive for buyers. Consequently, market activity has slowed.
Coal and colour chemicals used in dyeing, printing and finishing have also become costlier. Processing units have raised charges by approximately 5% to 7%. However, businesses say these increases have not covered the additional expenses.
Some Processing Units Reduce Working Days
To limit losses and manage inventory, some processing units have started closing for one or two days each week. This slowdown is creating concerns among small and medium-sized enterprises that rely on regular orders.
Meanwhile, traders are taking a cautious approach to purchasing. Many buyers fear that falling prices could leave them with expensive inventories and financial losses.
As a result, demand for grey fabric has weakened. This decline is affecting production schedules and business activity across the sector.
Labour Shortage Adds to Industry Challenges
Alongside rising costs, the industry is facing a shortage of labour. Weak order books and irregular production schedules are also making it harder for unit owners to retain workers.
Bharat Chhajer, former Chairman of The Powerloom Development and Export Promotion Council (PDEXCIL), said the industry is facing pressure across several areas.
“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.”
Industry Seeks Support to Stabilise Operations
With raw material prices remaining high and demand showing signs of weakness, textile businesses are seeking timely support measures. Industry participants say such measures are needed to stabilise operations and protect the competitiveness of Ahmedabad’s textile sector.
