AHMEDABAD|SURAT|RAJKOT: Liquidity crisis and the resultant fall in demand due to demonetization has left industrial units gasping. Diamonds, garments, chemicals, ceramic, synthetic textiles and many other industries are mulling shut downs; several units have already stopped production temporarily.The garment manufacturing industry ­ there are about 15,000 units in Gujarat manufacturing a minimum of 200 pieces a day -has come to a grinding halt. With no wholesale traders coming to purchase garments, manufacturing units have stopped production. “Manufacturing has been completely stalled.Why would someone produce garments when there is no demand? All our units are closed,“ said Vijay Purohit, president, Gujarat Garment Manufacturing Association (GGMA).Synthetic textiles units in Surat have decided to work only in two shifts as against round the clock operations.“It's a wait and watch game.We may take a shutdown if the situation doesn't improve,“ said a unit owner.Diamonds and chemicals, where Gujarat is a leader, too, are feeling the heat. Barring big companies in Rs 90,000crore diamond industry , majority of the small and medium enterprises as well as traders have extended Diwali vacation till December 1 as angadia firms are complaining of cash issues. Diamonds being high-value trade, most of the business is done in cash. Experts fear that demonetization may wipe out small traders from the market, and will result in huge amount of default cases after December.Several units in the Rs 60,000-crore chemical industry are operating at 50% capacity . “Usually , buyers make payments to chemical units only after Diwali. Post demonetization, there have been issues with regard to payments leading liquidity problems,“ said Jaimin Vasa, president, Gujarat Chemical Association According to dyestuff makers dyes and dye intermediate units have seen their production slump by 25% following reduction in demand and cash crunch. Situation is more or less the same in India's biggest ceramic cluster in Morbi.“A single unit requires minimum Rs. 1.5 crore working capi tal. We have to pay transporters, a backbone of the industry, in cash, which is not adequately available. Around 20% production has stopped,“ added a Morbi-based tile manufacturer. Ceramic units may take a total shut down if liquidity is not eased till November 24.