Surat weavers slash production to fight demand slowdown

Surat's Rapier Jacquard weavers are facing a double whammy: weak domestic demand and a liquidity crunch. To cope, the Rapier Jacquard Weavers Association has advised members to cut production by 80 per cent.

Fabric prices for saris and women's garments have fallen 30-40 per cent since February, and cautious buyers are delaying payments. A new income tax rule for small businesses has further tightened credit, worsening the situation. To prevent fabric glut and maintain price stability, weaver units will voluntarily limit production to just 20 per cent of capacity. This strategic move aims to align supply with demand, ensuring fabric availability while avoiding oversupply.

Association president C K Maniya blames a new payment rule that abruptly reduced credit terms from 30-120 days to a uniform 45 days. This, he argues, drains liquidity and cripples production during the slow first quarter. A gradual implementation, he suggests, would be less disruptive.