29 Apr '25
(Fibre2Fashion News Desk (KUL): Gujarat and Maharashtra, India’s key textile-producing states, are grappling with an acute labour shortage, disrupting fabric and garment production across the region.
The sectors, being highly labour-intensive, have been particularly hard hit by the reduced workforce. Gujarat’s well-known textile hub, Surat, has witnessed up to a 50 per cent decline in textile factory output. However, weak retail demand may prevent price hikes despite slower textile supply.
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Textile hubs in Gujarat and Maharashtra, including Surat and Ichalkaranji, are experiencing a sharp decline in production—up to 50 per cent—due to an annual labour migration, as many workers from Uttar Pradesh and Bihar return home during summer.
Despite the disruption, fabric prices are expected to remain stable due to steady-to-slow demand and pre-planned production.
Surat is renowned for its weaving, processing, and garmenting activities—all of which rely heavily on manual labour. A large portion of the workforce hails from Uttar Pradesh and Bihar and typically returns to their native villages during summer for one to two months.
These workers are not permanently employed but are paid based on output, making their absence financially consequential for them, yet beyond the control of factory owners. Many leave to engage in agricultural work or assist with harvesting, where they often earn higher seasonal wages.
Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce & Industry (SGCCI), told Fibre2Fashion, “Factories are compelled to reduce production by up to 50 per cent as the textile industry faces a labour crunch. It is estimated that around half of the workforce has gone on leave to their native states.
Workers are expected to return after the first rains, likely in the second half of June.” He added that power looms and auto looms are facing the most severe worker shortages. Textile processing and garmenting are also affected. Not just textiles, but other industries are facing similar shortages of labour.
The textile industry is facing similar challenges in other parts of Gujarat and Maharashtra. Bharat Shah, a power loom owner in Ichalkaranji (Maharashtra), said, “Power looms have had to cut fabric production as the number of workers has dropped in the past two to three weeks.
Labour shortage has become an annual issue as industries are increasingly dependent on workers from UP and Bihar. These workers typically return by the end of June when the rainy season starts.”
Labour shortages have dented textile factory production, but a sudden drop in supply or spike in fabric prices is unlikely. There are clear signs of consistent supply and stable prices, unless there is an unexpected surge in demand for end products like garments and other finished goods.
Shah explained that this is an annual labour migration, and factory owners have already planned production accordingly. Wholesalers have also built up adequate stock for the summer months. More importantly, the current demand for textiles and garments is steady to slow, which is not conducive to price increases.
Gujarati also noted that a short supply is unlikely during the summer months unless there is a sudden rise in demand. The present level of demand has already been factored in by manufacturers.
This steady to slow demand will not cause a shortage of supply. However, occasional short supply of specific textile varieties may be experienced during this period of slow production.
K M Subramanian, president of the Tiruppur Exporters’ Association, told F2F, “The garment manufacturing units in the Tiruppur region are also facing a labour shortage. Tentatively, we are short of around 40,000 workers in the region.
Workers are getting better jobs in other sectors including IT sector, which is the main reason for the labour shortage. Growing IT and other sectors need non-technical workers for supporting and ancillary services. Garment production activities are being affected by this problem.
However, another industry expert said that the region is not facing a seasonal labour shortage, as workers in the region typically return to their native places in Uttar Pradesh and Bihar before the Holi festival. They are now coming back to the factories. (Source: Fibre2Fashion.com)