90% drop in clothing business in Surat

June 16, 2021

Surat’s textile market is open after a long lockdown, but the situation is that even after 4 weeks, only 40 trucks carrying cloth to different states of the country leave daily. Usually 400 trucks used to leave Surat for Deshwar every day during the wedding season. That is, only 10 percent of the business happens. 90% business is not done.

When Surat’s textile market opened on May 21, only 5 trucks of cloth were coming out. But now the situation has improved and 40 trucks go by. However, compared to normal days, only 10 per cent of the 400 or about 40 trucks carry the cloth to the markets of different states.

In Surat, many markets, including the textile market, remained closed due to rapid infection in the second wave of corona. The market is now open due to the decline in infection, but business is not on track yet. Markets across the country are also not fully open yet. Traders associated with the textile market say that it may take another three weeks for the textile market to come back on track.

Surat’s textile market is currently sluggish as wholesalers from outside the city have not come to Surat for shopping. The small things that are traded now are done online.

In normal days, the business of Surat’s textile market is 100 crores per day. In this way, the textile market, like any other business, has had a huge impact since the start of Corona in March 2020 and then the lockdown in the country. The textile market has not started in full swing since March 2020. A trader in the textile market said, “The biggest concern for traders right now is about payment. According to an estimate, 10,000 crore rupees are stuck with the textile traders in Surat due to the Koro period.

Yuvraj Desale, president of Surat Transport Association, said that the sluggishness in the textile market has not gone away. In normal days, about 400 trucks of cloth used to go from Surat to different states of the country, today the situation is that only 30 to 40 trucks go daily.

In 2019, it has come down from 12 thousand crores to 6 thousand crores. Surat city used to have 450 dyeing units which now closed down to only 350. There were one lakh embroidery machines.
The weaving of 6 lakh looms was reduced to 4 lakh. One lakh people got employment. About 4 lakh people were getting employment in the textile market.
Dress material of 7-8 meters was coming, which has now come down to 4 meters, as women have now started wearing leggings instead of dresses. At the same time, dupatta has also become a part of fashion, which has had a bad effect.

As on 26th Sept 2020 Textile business of Silkcity Surat Textile Market is based on one chain system and when one link of this chain gets weak then the whole business system collapses. The transport business also accounts for 70-75 percent of the textile industry in Surat. Even the Surat Textile Market, which produces 15 crore meters of cloth per day, has seen only 40 per cent business activity. Experts say mills have reached only 50 per cent, textiles market 50 per cent and powerloom units 30-35 per cent. Hundreds of trucks of cargo can be shipped every day, which is more than 300 in previous years.

The Indian government in 2019 signed free trade agreements with 15 other countries, including China, under the Regional Comprehensive Economic Partnership (RCEP). The textile industry of Gujarat has been badly affected. Chinese manufacturers export ready-made shirts from polyester to European countries at prices ranging from 2.5 2.5 to 3. Only shirts priced at Rs 2-2.25 are available in India. India’s textile industry directly employs 45 million people and indirectly employs 60 million people. The textile industry generates 21 per cent of the employment. The region also accounts for 2% of the country’s GDP.

Gujarat had an estimated 8.5 to 9 lakh looms. Now after GST its total number has gone up to 6.5 lakhs.

According to the data presented at the 8th Vibrant Gujarat Summit, the size of Gujarat’s textile industry was around 25.25 billion in 2017.

There are about 1500 large and medium sized textile units in Gujarat.

Gujarat accounts for 12% of India’s textile exports.

Gujarat textile industry accounts for 25% of the country’s manufacturing sector.

Gujarat has more than 600 medium and large sized textile processing houses in the country.

Gujarat is a major producer and exporter of cotton in India.

Gujarat accounts for 33 percent of the country’s total cotton production. Also, Gujarat accounts for 60% of the total cotton exports from the country.

Gujarat is also the largest producer of denim fabric in India. Gujarat ranks third in the world in terms of denim production.

Gujarat also ranks second in the country in the production of cotton cloth. Significantly, Gujarat produces 39 million meters of cotton cloth annually.

Also 50% of the processing machinery manufacturers used in the textile industry are in Gujarat.

Whereas 90% of the total number of weaving machinery manufacturers are located in Gujarat.

According to a report by Financial Express, the annual turnover of Surat’s textile industry alone is around Rs 40,000 crore.

There are 144 mixed mills including spinning mills in Gujarat. There are 897 ginning and processing units in Gujarat.

Apart from this, there are 22 Surgical Cotton Units, 2362 Processing Readymade Garment Units, 362 Technical Textile Units, 513 Power Processing Units and 1146 Hand Processing Units.