Challenges drive textile units to extend Diwali break

Ahmedabad’s textile processing industry is facing a challenging period, leading to an extended Diwali vacation for many units, lasting around 12-14 days this year.

Most units ran at reduced capacities of approximately 50% in the week preceding Diwali, and due to low new orders, many factories are expected to resume production around November 26.

The industry is grappling with factors such as weak demand, high inventories held by traders, and increased imports from China, which have significantly impacted domestic production. 

Last year, processing units were also shut for over 10 days post-Diwali due to subdued demand.