In Surat weaving hub, factories to stay shut 2 days a week

The conflict between Iran, the United States, and Israel has caused a ripple effect in Surat's weaving industry, impacting textile factories. Polyester yarn prices have surged, and buyers are unwilling to pay higher prices for woven textile grey cloth. To cope with this situation, the Unn Industrial Estate in Surat has decided to shut its factories for two days a week in the coming days.

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) had previously petitioned Union Textile Minister Giriraj Singh to exempt basic customs duty on DTY (draw textured yarn), POY (partially oriented yarn) and FDY (fully drawn yarn), polyester yarn for three months. The demand was accepted, and the basic customs duty on PTA (Purified Terephthalic Acid) and MEG (Monoethylene Glycol) was exempted to 0 percent from April 2 to July 15, 2026, in hopes of stabilizing the situation.

With over 800 weaving factories (30,000 powerloom machines) in the Unn area, Surat's textile industry is significantly affected. The Unn Powerloom Association leader, Zahid Kapadia, stated that the major rise in the price of yarn, PTA, and MEG - by-products of crude oil - triggered the decision. When crude oil prices were $70 per barrel in February 2026, polyester yarn cost Rs 112 per kilogram.

However, due to the international conflict, the crude oil supply chain was disrupted, leading to an increase in crude oil prices to around $95 per barrel and polyester yarn prices to Rs 140 per kg.

As a result of these price hikes, buyers of grey cloth prefer to buy at the old, lower rates rather than the new, higher prices. This has put the weavers in a difficult position, as they cannot bear the financial losses. The association decided to curtail production by keeping two days off in a week, starting from next week, with Tuesday and Wednesday being the off-days in Unn industrial areas. The SGCCI president has expressed a desire for an extension in the exemption of customs duty on PTA and MEG.