Liquidity crunch hits Surat textile hub as yarn consignments remain stranded

Surat’s textile sector is grappling with a severe supply-chain impasse as approximately 1,000 containers of specialized imported yarn, valued at an estimated Rs 250 crore, remain impounded at Nhava Sheva and Hazira ports. The standoff follows an interim order from the Gujarat High Court, which stayed a November 2025 government notification that had previously permitted the import of these yarns. Initiated by a group of domestic spinners, the legal challenge has effectively halted customs clearance for consignments already in transit, leaving local weavers and importers facing mounting demurrage costs and a critical blockage of working capital.

Industry representatives state, roughly 500 containers are stranded at each port, containing critical raw materials sourced from China, Vietnam, and Indonesia. Ashok Jirawala, President, The Southern Gujarat Chamber of Commerce and Industry (SGCCI), has called for a pragmatic resolution, noting, many of these shipments were ordered and financed via letters of credit well before the court’s intervention. This situation is paralyzing our production cycles, indicate industry sources, noting, local yarn prices have already risen by Rs 15-20 per kg in the last ten days. As the Chamber prepares to present the matter to government and port authorities, the crisis underscores the intensifying conflict between domestic upstream producers seeking protection through Quality Control Orders and downstream garment manufacturers desperate for competitively priced inputs to maintain their export viability.

Based in Surat, the textile cluster serves as a primary hub for synthetic yarn processing and garment manufacturing. The sector focuses on man-made fibers and fabrics, supplying domestic and global retail markets. Currently, the industry faces severe pressure from rising input costs and supply disruptions, necessitating urgent regulatory intervention.