Surat Weavers Cut Production as Crude Oil Prices Surge

The Surat region in India is facing a crisis in its polyester textile value chain due to rising input costs and volatile crude oil prices. Weaving units in the Unn industrial area have decided to reduce production by observing two consecutive weekly holidays, shutting down on Tuesday and Wednesday every week. This decision was made after manufacturers struggled to absorb the sharp rise in input costs, including polyester yarn, purified terephthalic acid (PTA), and monoethylene glycol (MEG).

According to Zahid Kapadia, leader of the Unn Powerloom Association, the price of crude oil rose from $70 per barrel in February 2026 to around $95 per barrel due to international conflict and disruption to the crude oil supply chain. As a result, polyester yarn prices increased from ₹112 (~$1.17) per kg to ₹140 (~$1.47) per kg. However, buyers of grey fabric are still seeking material at old rates, making it difficult for weavers to pass on higher production expenses.

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has been pressing the government for relief from customs duties on polyester-chain raw materials amid elevated international prices. The chamber had earlier approached Union Textiles Minister Giriraj Singh seeking temporary duty relief on polyester inputs, including draw textured yarn (DTY), partially oriented yarn (POY), and fully drawn yarn (FDY). With the pressure persisting, the Surat industry is seeking an extension of the customs duty exemption on PTA and MEG.