Weaving units in Surat are weighing an early start to their Diwali break, around 15 days ahead of the usual schedule, according to a report published on 14 October 2026. Owners say higher yarn costs, weaker-than-expected orders and tight cash flow are making it hard to keep looms running at full speed in the weeks before the festival.
Yarn is the main pressure point
Industry representatives say yarn prices have risen by roughly 35–40% in recent months, with raw material costs up by as much as ₹50 a kg since June. They partly link the increase to tensions in the Middle East, and partly to pricing by domestic suppliers. The Rapier Jacquard Weavers Association of Surat put the rise in some yarns as high as 66% when it met the Union Textiles Minister on 9 October.
Mayur Golwala, chairman of Sachin GIDC, stressed that yarn is the basic raw material for Surat's textile industry. The industry has asked the government to act against what it calls artificial price increases, and to make sure local weavers can buy yarn at internationally competitive FOB rates.
Orders and payments slow
At the same time, orders for grey fabric and finished garments are below expectations, so weavers say they cannot pass the higher costs on to buyers. Unsold fabric is building up, payments are coming in more slowly and working capital is getting tighter. No date has been fixed for the early shutdown.
Saree makers expect lower output
In the saree segment, manufacturer Umashankar Tiwari has said that the workers' strike and weekly-off demands could cut monthly production by more than 20%. He says costs for fabric, zari, yarn, sequins and design work have risen by 30–35%, and points out that the 12-hour, two-shift system with overtime has been the norm in Surat for three to four decades. Unnamed industry sources estimate that saree prices could rise by 30–40% during the festive and wedding season, though this is an estimate rather than a market-wide figure.