Many units in Surat’s manmade fabric sector have remained shut in the last few months. The main reason is the import of under invoiced Chinese fabrics. Around eight crore meters of Chinese fabrics have been dumped in various parts of the country in the last year.
About 70 per cent of weaving units are operational but at less than 60 per cent capacity while the rest have shut shop. Around 90 per cent of units are not getting job-work from traders. Most textile dyeing and printing mills are without job-work. This is due to the dumping of Chinese fabrics and falling demand for polyester fabrics in the country. Around 1.5 lakh workers are currently jobless. Most of them have moved out of the city to their hometowns in Bihar, Uttar Pradesh and Orissa.
Around 45 per cent of weaving units--around three lakh power loom machines--have shut shop in the last three months. This has been due to dumping of under-valued Chinese fabrics at a cost of less than Rs 8 per meter.
Surat's manmade fabric sector contributes to around 40 per cent of the nation’s manmade fabric demand. The daily production of manmade fabrics in the city is pegged at four crore meters.