Gujarat weavers reel under soaring yarn prices, seek State government intervention

AHMEDABAD: Surat's textile industry is facing a deepening crisis as soaring yarn prices and rising production costs squeeze thousands of weaving units across Gujarat.

Industry representatives said yarn prices have increased by 40-45% over the past two months, while grey fabric prices have risen by only about 10%, leaving weavers unable to recover the sharp rise in input costs.

The crisis has hit small weavers the hardest. Of Surat's estimated 50,000 weavers, around 70% are small-scale unit owners, many of whom are struggling to repay bank loans amid shrinking margins and weak cash flow.

Adding to the pressure, electricity, labour, coal, transport and rental costs have also increased, while weaving charges have largely remained unchanged.

Weavers also face delayed payments from traders, often receiving dues only after 60 to 120 days. In contrast, yarn dealers reportedly charge 1.5% monthly interest, or 18% annually, on delayed payments, worsening the financial burden on small units.