Some 20 textile dyeing and processing mills in Surat have shut shop. One reason is falling demand for polyester. Those that are still functioning are working at reduced capacity. Daily production has gone down to three crore meters a day from 4.5 crore meters a day. Production costs have also increased by 15 per cent to 25 per cent due to a rise in labor and raw material charges. Surat has some 325 mills.

On the other hand, lower production results in lower efficiency, higher fuel consumption and a higher cost per unit. Customers who once purchased 30,000 meters of a quality have now reduced the offtake to 10,000 meters to 15,000 meters.

Export of synthetic fabrics from the Surat textile industry is around Rs 20,000 crores. The textile industry in Surat is mainly engaged in yarn production, weaving, processing as well as embroidery. Nearly 30 million meters of raw fabric and 25 million meters of processed fabric are produced in Surat daily. Surat wants to expand through forward integration. As of now, yarns and fabrics comprise the major production. Now units want to move ahead into garment manufacturing and move ahead from manufacturing just synthetic fabrics to producing cotton fabrics too.