Textile processing units in Surat have decided to remain closed for two days every week, a move expected to significantly impact production in India’s largest man-made fabric hub.
The decision has been taken by industry stakeholders in response to ongoing financial and operational challenges.
According to industry sources, the implementation of stricter payment regulations, particularly the 45-day payment rule under MSME norms, has disrupted the traditional business cycle. Textile traders and processors are finding it difficult to complete the entire chain—from procurement of grey fabric to processing and final sales—within the stipulated timeframe.
As a result, job work orders have declined, especially during the last months of the financial year, leading to reduced production activity. Industry leaders have indicated that the slowdown in demand, coupled with delayed payments, has forced units to cut down operations by observing two weekly shutdown days.
The move is expected to affect overall output and may also impact upcoming seasonal demand, including festive business cycles. However, the temporary measure is seen as a necessary step to manage cash flow and stabilize operations in the current market conditions.