Labour shortage disrupts textile output in Gujarat and Maharashtra, but prices remain stable

Textile hubs in Gujarat and Maharashtra are battling a sharp labour shortage, severely impacting fabric and garment production. In Surat, Gujarat, textile factory output has dropped by up to 50 per cent as thousands of migrant workers from Uttar Pradesh and Bihar return home for seasonal agricultural work. The absence of these output-based wage earners has forced a significant cutback in weaving, processing, and garmenting activities.

Ashish Gujarati, former president of the SGCCI, noted production is likely to remain subdued until workers return after the first monsoon rains in June. Power looms and auto looms are among the most affected. Maharashtra’s Ichalkaranji is facing similar challenges, with power loom owners reporting reduced output amid an annual labour migration. Factory owners say the issue recurs every summer and is factored into their production planning.

Despite lower output, fabric prices are expected to stay stable due to weak retail demand and adequate summer stockpiles. Occasional shortages in specific varieties may occur, but no major disruptions are anticipated unless end-product demand rises sharply. In Tiruppur, Tamil Nadu, around 40,000 garment workers are reportedly missing, as many are drawn to better-paying roles in IT and allied sectors. However, some experts say the region’s labour force is gradually returning post-Holi.