Festive demand for man-made textiles sees Surat increase production

By

Isabelle Crossley

Published
Aug 23, 2019

Textile production hub Surat has increased man-made fibre production from 40% capacity to 90% as demand for MMF increases as the festival season begins.

Surat has seen MMF demand improve following a recession in India’s MMF sector for the past year and a half to two years due to factors including changing rates under the goods and services tax regime and prior demonetisation. The textile markets on Surat’s Ring Road have got a new influx of orders causing manufacturers to increase production back to 90%, textile manufacturers told TNN.

“The textile sector is returning slowly to normalcy after two years,” Jitu Vakharia, president of the South Gujarat Textile Processing Association, told TNN. “The textile processors are getting good orders. At present, the manufacturing of processed fabrics has increased by almost three crore metre per day.” 

As the festival season brings orders for traditional wear and gift items, MMF manufacturers are hoping the turn in the market will help them on the road to recovery. The SGCCI has also been in talks with the government about GST rates with the hope of reviving the power-loom industry by resolving the ITC refund issue. Vakharia recently met with Minister of Finance Nirmala Sitharaman on the issue.