Surat's textile sector faces cost-push crisis as key input prices surge

Surat textile weavers and processors have entered their third crisis in one-and-a-half years. In November 2016, high-value currency notes were withdrawn, paralysing Surat as its economy was largely cash-based involving small processors and migrant employees. Last July, the industry was shut for long after the Goods and Service Tax was imposed, rendering a big blow to textile processors, whose cost increased sharply along with compliance burden.

As if this was not enough, polyester yarn prices increased 6-8 per cent in the past one month and 12-15 per cent in past 3 months. Total cost increased along with other costs since