# Surat weaving units cut production as polyester yarn prices surge

2026-08-23T18:48:11+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Around 1.5 lakh powerlooms in Surat have voluntarily cut production or observed holidays as a sharp rise in polyester yarn prices makes fabric manufacturing unviable. Industry representatives said on Sunday that some units have adopted a two-day work week while others have reduced shifts. Polyester yarn prices have risen from Rs 112 per kg to Rs 140 per kg, a 25-30% increase. Vishnubhai Patel, former vice-president of the Federation of Gujarat Weavers Welfare Association (FOGWA), said manufacturers cannot pass the full cost to buyers, with grey fabric prices rising only Re 1 to Rs 1.50 per metre against an expected Rs 5. The production cuts could affect earnings of 40,000 to 50,000 workers. FOGWA has advised units to slow production for the next month in hopes of price stabilisation. The industry has sought lower customs duties on yarn and raw materials.

## Indian Opinion Analysis

Surat's powerloom sector employs over 10 lakh workers and produces fabric worth roughly Rs 1 lakh crore annually. The current crisis follows a pattern seen in 2022 when cotton yarn price volatility forced similar production cuts. The West Asia conflict's impact on crude oil derivatives, PTA and MEG, is the immediate trigger, but weavers allege yarn manufacturers have increased prices beyond what input costs justify. The government's response, or lack thereof, will be crucial: lower customs duties could ease input costs, but any investigation into alleged cartelisation would take months. Watch for the next month's yarn price data to see if the voluntary production cuts force suppliers to reduce rates.

## Coverage

- nationalheraldindia.com <https://www.nationalheraldindia.com/national/surat-weaving-units-cut-production-as-polyester-yarn-prices-surge>
  Straight news agency-style report with no discernible slant, presenting industry claims and context factually.

This story was synthesised by AI from the source linked above.

Tags: FOGWA, polyester yarn, Surat, textile industry
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