Surat: The country’s largest man-made fibre (MMF) industry is witnessing the direct impact of the ongoing fierce war between America-Israel against Iran and has started showing some ugly signs in the Surat textile industry.
Yarn from which fabric is made is considered the first link in the value chain of the textile industry and with immediate effect on all types of yarn, yarn manufacturers, yarn distributors, yarn suppliers have conveyed the message to their main customers (weaving, knitting manufacturers) that the price of petroleum products has been increased by Rs. 15 per kg.
Textile trader Vijay Mewawala said that the supply of petroleum products has been disrupted due to the ongoing war in the Middle East. Yarn is made from basic raw materials like MEG, PTA and these basic raw materials are mainly produced from petroleum products. Due to the fierce war that has been going on for the last six days, the supply of petroleum products has stopped, now there is a short supply of basic raw materials for making yarn.
The shipping charges of whatever material is supplied have increased three to four times. In such a situation, yarn manufacturers have also started giving messages to their customers from last Saturday, Sunday that with immediate effect, the price of all types of nylon, polyester yarn products will be increased by Rs. 15 per kg with immediate effect.
During the last three days, spinners, distributors etc. supplying yarn to weaving and knitting industrialists of Surat have increased the prices of all types of yarn. According to the cycle of the textile industry, when the price of yarn increases, the price of grey or finished goods also increases immediately.
But, this time the implementation of the increase in yarn prices has already started, but so far, there has been no announcement from weavers or knitters to increase the price of grey or finished fabric.
Regarding why this happened, textile industrialist Vijay Mewawala says that there is no demand for grey cloth in the market. Many weavers still have stock of grey, if the price of grey cloth increases now, then the demand is likely to increase further. Therefore, even after the increase in yarn prices, for the first time, due to the slowdown in the market, the prices of grey cloth have not increased immediately.
Around two lakh high-speed looms and around four lakh shuttle looms are operating in weaving factories in Surat. Grey cloth or finished fabric is produced on all these machines with the help of yarn. Polyester and nylon yarn are the most consumed in Surat. Given the huge increase in yarn prices, it is believed that other links in the value chain of the textile industry such as weavers, knitters, processors, traders, etc. will also increase their prices in phases in the coming days. If the war continues for a long time, the huge increase in the prices of fabrics including sarees and dress materials will ultimately be borne by the consumers, say textile market leaders.
