Labor crunch causes price rise in Surat grey market | SupportBiz

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Labor crunch causes price rise in Surat grey market

 
Tags: Surat, looms
Labor crunch causes price rise in Surat grey market

Post Diwali celebrations the production fell as a dearth was experienced in labor. The result seen is that prices in the grey market rose by almost Rs 0.50 to Rs 1 in the past week. According to patrika.com, this upward trend would continue in the near future.

Speaking to Patrika, sources said that the factories are currently producing only 70% of their capacity. With the lagnsara, or festive season setting in, traders are placing large orders, putting pressure on the producers who are facing a supply crunch.

With the onset of lagnsara, the market demand for 60gm polyester, 60gm chiffon, brasso, Russian and dyed fabrics increases. Fall in production of the textile, traders say is upsetting the market and is leading to rising prices in the market, reported Patrika.

Even though strikes in factories of Bhiwandi have been resolved, there has been no respite from the price rise. Powerloom weavers in Bhiwandi and Malegaon went on strike to protest increase in the electricity tariff. The shortfall the production is expected to continue for another week.