Ahmedabad, Nov 14 (KNN) Ahmedabad’s textile processing industry has decided to extend the Diwali vacation for many units, lasting around 12-14 days this year. 

Most units ran at reduced capacities of approximately 50 per cent in the week preceding Diwali, and due to low new orders, many factories are expected to resume production around November 26. 

Currently, the industry is facing challenges like subdued demand, traders holding high inventories, and heightened imports from China, leading to a substantial impact on domestic production. Last year, processing units were closed for more than 10 days post-Diwali due to sluggish demand.

Naresh Sharma, former vice-president of Ahmedabad Textile Processors’ Association (ATPA), said, “Overall, the textile industry has been passing through a tough period over the past year and a half. There was a spark in demand for a month prior to Diwali but again orders have dried up for processing units. Most of the units have stopped production activities from Sunday and will restart production on November 26. There are very few orders because even traders have high inventories.”

Narol, one of the biggest cotton textile processing hub in India, houses 138 processing units that collectively process around 2,800 million metres of fabric annually, generating approximately Rs 10,000 crore in revenue and employing around 1.5 lakh workers.

Bharat Chhajer, former chairman of Powerloom Development and Export Promotion Council (PDEXCIL), pointed out that South Indian powerlooms ceased production from November 6 due to weak demand and price disparities. 

“Since around 70 per cent of grey fabric from South India is processed in Ahmedabad, the shutdown of these looms has adversely affected processing houses in the city. Additionally, the high import of fabric from China has contributed to lower orders in the domestic market,” he said.

(KNN Bureau)