Surat: Rising crude oil prices amid the ongoing conflict in West Asia have begun pushing up yarn and raw material costs, putting fresh pressure on Surat’s textile industry and forcing manufacturers to consider production cuts and temporary shutdowns to control losses. Industry leaders say the spike in petroleum-based inputs has sharply increased the cost of man-made fibres (MMF), leading to higher yarn prices and weakening demand in the market.

According to industry reports, prices of MMF such as polyester have risen by 10–25 per cent within days as global crude oil rates surged. Since polyester, nylon and several textile chemicals are petroleum-derived products, the increase in crude oil prices has directly raised yarn manufacturing costs. In several categories, yarn prices have increased by ₹10 to ₹30 per kg, adding to the burden on weavers and processors.

Stakeholders say the rise in MMF prices may push some buyers back towards cotton, as the price gap between natural and synthetic fibres has narrowed. However, the overall increase in input costs is affecting the entire value chain, from yarn production to weaving, dyeing and processing.

Mills consider weekly shutdown to control losses

Amid rising costs and weak demand, the executive committee of the South Gujarat Textile Processors Association (SGTPA) has approved a proposal to keep textile processing mills closed for two days a week. The move could affect around 350 processing units in the Surat textile cluster.

Following meetings with industry groups, SGTPA decided that the two-day weekly shutdown will continue until the situation improves. Some factories have already cancelled night shifts and are operating only day shifts with limited staff due to labour shortage and irregular LPG supply.

SGTPA president Jitendra Vakharia said the weekly shutdown, including the regular weekly off, has been proposed to balance production with falling demand and rising input costs. Normally, workers get one weekly off, but during peak demand even that is cancelled. However, the current slowdown has forced mills to scale down operations.

He added that the war-driven rise in crude oil, chemicals and yarn prices has increased production costs, while demand in both domestic and export markets has slowed. Labour shortage after the Holi festival and disruption in LPG supply have further worsened the situation, making it difficult for mills to operate at full capacity.

Weaving sector should also take weekly holidays: Mayur Golwala

Leading weaver and Secretary of Sachin Industrial Society, Mayur Golwala, said the weaving industry should also collectively consider keeping two to three holidays per week. This would help reduce the accumulation of finished goods and control the sharp rise in yarn prices caused by cartel-like behaviour.

He said a small group of spinners and yarn manufacturers can create artificial price hikes, but such increases cannot be sustained in the unorganised weaving sector. Industries linked to weaving should consider buying yarn only in limited quantities and strictly as per requirement, he added.

Crude oil surge hits entire textile chain

Industry estimates indicate that Surat, which produces nearly 6 crore metres of greige fabric per day, is already witnessing the impact of rising input costs. Higher crude oil and coal prices have increased expenses on chemicals, processing, transport and energy, raising fears of a price rise in sarees, dress materials and garments in the coming weeks.

Textile processors said the situation has been aggravated by labour shortages, as many migrant workers returned to their home states during Holi and have not yet returned. With fewer workers and higher costs, several units have reduced shifts or are operating below capacity.

Industry bodies said the proposed production cuts and weekly shutdowns are temporary measures aimed at balancing supply with demand and preventing heavy financial losses until crude oil prices stabilise and market conditions improve. DeshGujarat