Surat Business & Demand

Surat Processing Charges Up 15%: Why Fabric Prices Are Higher This Diwali

Surat's dyeing and printing mills raised job-work charges by 15% from 7 September 2026, citing higher coal, chemical, power and labour costs. The traders' federation FOSTTA has opposed the increase, and market representatives say festive fabric prices are sharply higher than last year.

Dyeing and printing mills in Surat have raised their job-work (processing) charges by 15%. The South Gujarat Textile Processors' Association (SGTPA) approved the increase unanimously at its general meeting on 27 August 2026, and it applies to goods dispatched from 7 September 2026.

The association, chaired by president Jitendra (Jitubhai) Vakharia, said the increase is meant to cover rising costs rather than to raise profits. SGTPA represents around 400 dyeing and printing mills in the Surat region.

What has become more expensive

Processors and weavers point to several cost increases this year:

  • Coal: imported coal is up by as much as 50% since February 2026, according to Vakharia, who links it to supply disruption from the West Asia conflict. Non-coking coal has moved from about ₹6,000 to ₹9,500 a tonne.
  • Power: DGVCL's tariff has gone up from ₹7.30 to ₹9.15 a unit, roughly 25%.
  • Yarn: POY is around ₹180 a kg, compared with ₹140–150 earlier, and weavers say it has not come down even though crude oil has eased.
  • Labour: weaving wages have risen from ₹1.80 to ₹1.95 a metre in some units.

Before the increase, processing charges were typically ₹10–15 a metre; the hike adds about ₹1.50 a metre. Grey fabric, on the other hand, has eased slightly, from about ₹13 to ₹12.80 a metre, because of competition among weavers.

Traders push back

The Federation of Surat Trade & Textile Associations (FOSTTA) rejected the increase at its meeting on 2 September. Secretary Dinesh Kataria said processors had not consulted traders and asked SGTPA to roll it back.

Rangnath Sharda, joint secretary of the Surat Textile Market, has described the overall rise in fabric prices, about 30%, as unprecedented. By his estimate, a saree that sold for ₹200 last Diwali could cost around ₹260 now, and buyers in states such as Tamil Nadu and Karnataka are resisting the new rates.

What it means for Surat traders

Wholesalers are being squeezed from both sides: processing, yarn and power costs are up, while outstation buyers are pushing back on price. Traders may need to agree revised rate lists with regular buyers before Diwali, watch credit periods closely, and consider lighter or blended qualities for price-sensitive markets rather than absorbing the whole increase.

Questions traders are asking

How much have Surat processing charges increased?

The South Gujarat Textile Processors' Association approved a 15% increase in job-work charges, applicable on dispatches from 7 September 2026.

Why are Surat fabric prices higher in 2026?

Processors and weavers cite higher imported coal prices, a power tariff increase from ₹7.30 to ₹9.15 a unit, POY yarn at around ₹180 a kg and higher labour costs.

Have traders accepted the processing hike?

No. FOSTTA rejected the increase at its 2 September meeting and asked SGTPA to roll it back.

Sources

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