Surat’s trades — news, written weekly

The Ministry of Textiles revised the guidelines of its production-linked incentive scheme for man-made fibre (MMF) fabrics and technical textiles through a gazette notification dated 28 October. Under Part-II of the scheme, the minimum investment a company must commit comes down from ₹100 crore to ₹50 crore, and the minimum turnover it must reach comes down from ₹200 crore to ₹100 crore. The scheme now runs until FY 2033-34. FY 2026-27 and FY 2027-28 are treated as gestation years, the performance years are FY 2028-29 to FY 2032-33, and FY 2033-34 is the last year in which a claim can be made. The incentive on notified MMF and technical-textile sales starts at 11 per cent in the first performance year and falls by one point a year to 7 per cent in the fifth; the condition of at least 10 per cent additional growth in turnover stays. The Southern Gujarat Chamber of Commerce and Industry (SGCCI) had asked for exactly these two changes — a lower turnover bar for MSMEs and a longer scheme — at a meeting in Surat on 9 October attended by Union Textiles Minister Giriraj Singh. Its president, Ashok Jirawala, said many local units could not qualify under the old ₹200 crore limit, and urged manufacturers in Surat and South Gujarat to study the new rules and apply in time.

After two slow years in which many cutting and polishing units stayed shut for close to a month over Diwali, the city's diamond trade expects a much shorter festive break this year. A report on 31 October said units plan to keep working until 5 November, the day before Dhanteras, and to reopen earlier than usual, bringing the holiday down to around 15 days. The reason given by people in the trade is advance orders for the December Christmas season in the West, which have factories running at full capacity to meet shipping dates. Industry figures quoted in the report, who were not named, described the market as considerably better than in the previous two years and the order position and mood before Diwali as positive, while saying they hoped the pace would hold after the units reopen.

Chandi Padvo, the day after Sharad Purnima, fell on Monday 26 October this year. It is Surat's own sweet festival: families sit out under the moon and eat ghari, the round mawa-and-ghee sweet the city is known for, along with the savoury mix called bhusa. Ahead of the day, sweet shops took advance orders from families, for gifts, and from Surtis living in other states and overseas. The costliest version, ghari covered in edible gold leaf, was selling at about ₹21,000 a kilo against about ₹16,000 last year. Radhaben of Radha Mithaiwala, one of the makers, put the ₹5,000 rise down to the higher price of gold, which raises the cost of the leaf, and said orders were still coming in despite it. Ordinary ghari is made with mawa, pure ghee, dry fruit and spices, and the kesar version adds saffron, pistachio and almond.

In the run-up to Diwali, the power shortage reached Surat's textile chain directly. DGVCL, the South Gujarat power distributor, had announced an eight-hour weekly power cut, and on 21 October the textile markets decided to keep their Diwali lights on for five days — Dhanteras to Labh Pancham — instead of the usual twenty. FOSTTA chairman Kailash Hakim backed the move and said factory output had fallen 20–40 per cent this season because traders were not building extra Diwali stock; reports put the rise in fabric costs at about 20 per cent, with crude oil, coal, dye chemicals and yarn all dearer. On 23 October DGVCL cancelled the planned 4 pm–midnight cut on industrial feeders after instructions from senior officials. Jitubhai Vakharia of the South Gujarat Textile Processors Association said some 400–450 processing mills had run on generators for four weeks at an extra cost of about ₹40–50 crore, and called it the hardest period he had seen in 50 years. Ashok Jirawala of the Federation of Gujarat Weavers Association said sudden outages had damaged the electronic cards of modern looms, that a restart takes about two hours, and asked for at least 15 minutes' notice before any cut.

Surat's best-known saree name is showing how the city's fabric makers are moving into technical textiles. At Laxmipati Group's units, grey (unfinished) fabric is put through chemical treatment and finishing to raise its strength and performance, and alongside the georgette and chiffon used for sarees and garments, the group now makes specialised high-tenacity nylon fabrics for the defence sector. Amit Mittal of the group said these fabrics used to be imported, are now made in Surat for Indian buyers, and could be exported in future, adding jobs on the way. Managing director Sanjay Sarawagi credited Gujarat's textile policy and the state government's support. The report gave no figures for output or investment.

Figures released by the Gem and Jewellery Export Promotion Council (GJEPC) in mid-October showed India's gem and jewellery exports rising 9.43 per cent in September to US$2.95 billion. Inside that total, the two lines that matter most to Surat moved in opposite directions. Exports of cut and polished natural diamonds fell 5.44 per cent to US$1.29 billion, while polished lab-grown diamonds rose 40.72 per cent to US$151.43 million. For April–September, natural polished exports were down 6.96 per cent in value at US$5.81 billion but up 4.64 per cent in volume, at 83.98 lakh carats — more stones shipped at lower prices — and lab-grown polished exports were up 17.08 per cent at US$685.10 million. GJEPC said improving prices and a smaller fall in diamond export value were early signs of recovery for the segment; chairman Kirit Bhansali pointed to new products, value addition and new markets.