Bhiwandi Textile Industry Faces Crisis As Yarn Prices Surge 70%, Powerloom Units Struggle With Rising Costs

Bhiwandi's textile industry is grappling with a crisis as yarn prices have surged by 70% since March, causing significant financial strain for powerloom units and fabric manufacturers. The cost of raw materials has directly impacted these businesses, with many struggling to maintain margins as finished fabric prices have not risen proportionate to the raw material costs.

Traders fear that if this price imbalance persists, it could spread throughout the entire textile supply chain. Grey-fabric trader Bablu Thakur has called upon the government to monitor the yarn market and investigate the reasons behind this unprecedented increase in prices. He pointed out that the hike has been particularly sharp in several commonly used yarn varieties, with micro yarn's price rising from Rs 109 to Rs 160 per kg, full dull yarn from Rs 118 to Rs 178, and polyester yarn from Rs 150 to Rs 225.

This sharp increase in yarn prices has resulted in finished fabric being sold at around 30% below its production cost. Manufacturers are finding it increasingly difficult to continue operating due to the sharp rise in input costs while realizations remain low. Traders suspect that large market players and speculative traders in Mumbai and Gujarat might be profiting from the price rise.

The industry also expresses concern over the import of finished fabric from China, Indonesia, and Taiwan, as domestic manufacturers are being squeezed from both sides by rising yarn prices and competition from low-cost imports.