Weavers Distressed by Rising Yarn Prices; Demand Six-Month Duty Relief
New Delhi: Amidst rising raw material costs and sluggish demand, India's weaving and textile industry has urged the government to waive the Basic Customs Duty (BCD) for six months on key raw materials used in the polyester industry. Industry representatives state that escalating costs are pressuring downstream manufacturers and undermining the competitiveness of the textile value chain.
Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce and Industry, took to X (formerly Twitter) to urge the Ministry of Finance to remove the BCD for six months on Monoethylene Glycol (MEG), Purified Terephthalic Acid (PTA), Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Drawn Textured Yarn (DTY).
Commenting on this demand, industry stakeholder Alpesh Kapopara noted that temporary duty relief on these materials could help reduce production costs and boost the competitiveness of the textile value chain. Rakesh M. Barvalia also expressed concern over high yarn prices, while Darshan voiced apprehensions that persistent cost pressures could impact employment.
Meanwhile, price hikes have been recorded in the domestic polyester market. On September 26, the price of PTA rose by ₹1.10 to ₹106.50 per kilogram, and the price of polyester melt increased by ₹0.95 to reach ₹120.05 per kilogram. The price of MEG remained stable at ₹83.70 per kilogram. On the same date, the price of polyester staple fiber increased by ₹2 per kilogram; it had previously seen a hike of ₹3 per kilogram earlier in September. According to R.K. Vij, General Secretary of the Polyester Textile Apparel Industry Association (PTAIA), downstream manufacturers are cautious about making purchases due to the rising costs of PTA and MEG. Some producers are buying material only to meet immediate requirements.
Vij also attributed the temporary shortage of PTA in late August and early September to a decline in imports following the withdrawal of the customs duty exemption in mid-July. He further highlighted difficulties in sourcing paraxylene at competitive prices and rising freight costs, both of which are exerting pressure on production and downstream exports.
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