COTTON PRICE

Textile Mills Hit By A Lack Of Lignite Supply

Published: March 3, 2023
Author: DIGITAL MEDIA EXECUTIVE

Gold zari motifs are created using the Kadva process or the traditional Jacquard weaving method (hand weaving). At Fabriclore, you may find a fascinating selection of Banarasi textiles like unstitched suits and dupattas, taffeta silk that has been twisted into long textiles, pure hand-woven kinkhab silk, and machine-made kataan silk. The amount of textile processing businesses in the city is growing, but the profitability has been hampered by the rising cost of raw materials, particularly lignite. After March 1, the GMDC site in Bhavnagar has stopped providing lignite to the textile processors. As a result, they must pay extra for the lignite at the GMDC’s Mata no Madh location. They are unable to transmit the cost of the hike to the customers due to rising labour costs and rising electricity rates.

Accounts for lit fuel At several companies, the overall capacity utilisation has grown from 60% to 80%. Unfortunately, the price of lignite has increased, which has an impact on production costs. Processing units are unable to pass on the price rise to clients due to intense competition. Profitability is lower despite an increase in orders due to rising production costs.

One of the largest cotton textile production clusters in the nation, the Narol cluster in Ahmedabad has 120 units with an installed capacity of about 2.50 billion metres per day.

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