The textile processing sector in Surat has ramped up production following a rise in the demand for manmade fabric across the country. From the last one-and-a-half-years, the textile processing sector was reeling under a recession due to dwindling demand for polyester fabrics, labor issues and factors like GST and demonetization. Production of finished fabrics came down from 4.5 crore meters a day to two crore meters. Some textile processing units kept their units shut for three days a week to cut down on the production of finished polyester fabrics. A few small units shut down altogether.
However the fast approaching festive season has given a sense of hope. Orders have started flowing in. Manufacture of processed fabrics has increased by almost three crore meters a day. Textile mills running at 40 per cent capacity have ramped up production considerably. They are hopeful the ITC refund issue for the textile sector will be resolved since this will pave way for new investments and allow for the infusion of funds.
There are about 350 textile processing units in Sachin, Palsana, Kadodara and Sachin employing over 2.5 lakh textile workers. The grey or unfinished fabric manufactured by powerloom weavers is sent to the textile dyeing and printing mills for the final finishing.