Ahmedabad: Textile processing units, which are undergoing a rough patch, have seen job work processing charges come down. Prices of coal and colour chemicals have significantly decreased despite fluctuations, also bringing down the average charges for the units by around 15%.
For most Ahmedabad-based units, which are running at around 60% capacity due to low demand and high competition, this reduction brings good news.
Gaurang Bhagat, president of Maskati Kapad Market Mahajan said, “Input costs have decreased so traders are now getting their job work done at lower prices. This is good for Ahmedabad’s processing sector because many traders place job work orders for rayon and polyester in Surat due to cost advantage.”
Director of a leading textile processing house said, “Competition is high in this sector. Although there have been some fluctuations, overall, the prices of coal, lignite and colour chemicals have come down in the last six months.
Around three months ago, coal accounted for 27% of our total cost, which has now come to around 23%.
Similarly, colour chemicals prices are significantly down from their high three to four months ago.”
Naresh Sharma, former vice president of Ahmedabad Textile Processors’ Association (ATPA) said, “Various units have made changes in processing based on their order flow. While input costs have come down, overall orders are low. So, to utilise capacities, some units have reduced their processing charges.”
A senior official of the Gujarat Mineral Development Corporation (GMDC) said, “Domestic lignite prices have seen a decline in the past few months. In the last six months, prices are down to the range of Rs 800-Rs 1,300 per tonne for various mines. Currently, lignite from Mata no Madh and Umarsar costs Rs 2,770 per tonne and Rs 2,360 per tonne from Bhavnagar, excluding transportation cost.”
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