Home / Knowledge / News / Textiles / Crude oil price rise to affect Surat textile industry
Crude oil price rise to affect Surat textile industry
27
Feb '12
The rise in prices of crude oil in the past few days, especially after the Iran crisis, has made yarn and fabric producers in India's biggest man-made fibre (MMF) hub a worried lot.

The MMF industry in Surat heavily depends on crude oil products for manufacturing various yarns like polyester filament yarns, spun yarns and blended yarns, which are used to weave fabrics.

Speaking to fibre2fashion on the likely impact of crude oil price hike on Surat textile industry, Mr. Arun Jariwala, Chairman, Federation of Indian Art Silk Weaving Industry (FIASWI), said, “The increase in crude oil prices will affect Surat Textile industry in a manner that will increase the prices of yarn.”

“Last time, when the crude oil prices went up to US$ 150 per barrel, yarn prices increased by 20-25 percent. This time, while there will be no affect on cotton yarn price, the price of synthetic yarn is likely to go up by 10 percent. Hence, the costs will rise very high,” he adds.

Briefing about the impact on synthetic fabric producers, he says, “Since the last two years, growth is negative for synthetic fabrics. Now, again if the prices rise, the negative growth will become intolerable.”

However, the impact will be relatively less on yarn manufacturers. He opines, “The yarn manufacturers will still be able to bear the increase in price of raw materials as there are few such units and they are also in a position to export.”

Comparing how yarn and fabric manufacturers have fared, he says, “In the last two years, yarn exports have increased and the sector has a positive growth. But, the fabric segment has a negative growth. This means, they have exported yarn in greater quantities and at a lesser price, and thus sustaining high fabric prices in India. So, it will be difficult for the weavers and processors, and the consumers will prefer wearing cotton fabrics, rather than synthetic fabrics.”

To ease the situation, Mr. Jariwala recommends, “The Government will have to decrease the excise duty not only on yarn, but also on purified terephthalic acid (PTA) and Monoethylene glycol (MEG), so that cost of production is reduced and yarn is available at a reasonable price to weavers.”

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 22nd May 2017

GST to be biggest achievement of Modi govt: ASSOCHAM

Goods and Services Tax (GST) which is near a roll-out would be the...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Apparel/Garments | On 22nd May 2017

Retailers ask Congress not to go for consumption tax

The National Retail Federation has asked US Congress to focus on...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search