Job work processing fees have decreased at textile processing facilities, which are going through a difficult time. Despite variations, the cost of coal and colour chemicals has dramatically declined, resulting in a 15% reduction in average unit prices.
This decrease is good news for the majority of Ahmedabad-based operations, which are operating at roughly 60% capacity as a result of low demand and fierce competition.
The president of Maskati Kapad Market Mahajan, Gaurang Bhagat, stated that because input costs have fallen, traders are now able to do their business for less money. Due to cost advantages, many traders put job work orders for rayon and polyester in Surat, which is helpful for Ahmedabad’s processing sector.
The director of a well-known textile processing facility declared, “This industry is highly competitive. The costs of coal, lignite, and colour chemicals have decreased over the past six months notwithstanding minor variations.
Three months ago, coal accounted for about 27% of our overall costs; today, that percentage is closer to 23%.
Similar to this, the cost of colour chemicals has drastically decreased since peaking three to four months ago.
