Surat Textile Units Cut Production Amid Soaring Yarn Prices

Surat's textile units have been affected by the sharp rise in polyester yarn prices due to the West Asia crisis. The crisis has led to a disruption in the supply of crude oil, purified terephthalic acid (PTA), and monoethylene glycol (MEG), which are used to make polyester yarn.

Vishnubhai Patel, former vice president of the Federation of Gujarat Weavers Welfare Association (FOGWA) and former president of the Bamroli Weavers Association, said that around 1.5 lakh powerlooms in the city's weaving sector have resorted to voluntary production cuts.

The price of polyester yarn has increased from around Rs 112 per kg to Rs 140 per kg, an increase of about 25-30%. This has made fabric manufacturing financially unviable for many units.

FOGWA has advised weaving units to slow down production temporarily for the next month in the hope that yarn prices will cool and market conditions stabilise. The organisation has also sought relief in customs duty to make yarn and its inputs cheaper.