International and domestic factors are currently affecting the economic situation of India, which has led to uncertainty regarding the prices of raw materials. As such, many industries are reeling under the pressure of high-priced fuel and raw materials. The textile industry is no different and is currently going through a tough phase. Besides the obvious factors, this industry has also been impacted by low demand in the market.
International, as well as domestic factors, are currently affecting the economic situation of India, which has led to uncertainty regarding the prices of raw materials. As such, many industries are reeling under the pressure of high-priced fuel and raw materials. The textile industry is no different and is currently going through a tough phase. Besides the obvious factors, this industry has also been impacted by low demand in the market.
In Gujarat, textile processor units do not have enough demand to work for even three days a week. This news comes just about a month and a half later when the processing units said they were working at just about 50% capacity. Many of the 3,000 processing units in Surat, Ahmedabad and Jetpur have told their employees to work just thrice a week.
The price of grey cloth in the market is continuously falling. The price of 132 by 72 grey cloth has dropped from Rs104 to Rs87 per metre, and that of 30 by 30 has fallen from Rs98 to Rs84. So, the traders are hesitant to buy it. This has, in turn, affected the demand for processing units.
On the one hand, the processors are dealing with low demand, and on the other, the high price of fuel and raw materials. Price of acetic acid and amino silicone has increased significantly, and that of soda bicarb has almost doubled.
This is a tough situation for the processing units. According to sources, the market should have picked up after the heat wave, but that has yet to happen. Besides, the recent torrential rains might also add to the losses.
