SURAT: This may not be music to the ears of women across the country. An unprecedented hike in the prices of polyester filament yarn (PFY) may mean more expensive saris, polyester fabric and dress material as the textile manufacturers in the country's biggest man-made fabric industry of Surat are set to pass on the increased costs to the customers.
Market observers believe saris, polyester fabric and dress material manufactured in the textile city would be costlier by almost 30 per cent from their original price at present. Reason: The front and the second line spinners have increased the prices of PFY by Rs12 to Rs 14 per kg in the last two days.
"This is the highest ever increase in polyester yarn price," said Nilesh Mandlewala, immediate past president of Southern Gujarat Chamber of Commerce and Industry ( SGCCI) and a powerloom unit owner. "We have no option but to extend the Diwali vacation by another five to six days," he said.
Arun Jariwala, chairman of Federation of Indian Art Silk Weaving Industry (FIASWI), said, "Polyester yarn is the main raw material for polyester fabrics like sari, dress material etc. manufactured by the weavers. The unprecedented price hike will increase the production cost for the powerloom units and it will have a chain effect on the entire man-made fabric industry."
Robust demand, partly driven by speculations in the global market, has sent prices of Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) - main raw material for the polyester yarn - soaring at an unprecedented pace and is feared to create a bubble in the entire polyester industry chain including that in India and China.
Sources said the PTA prices climbed to a record high of $1,280-$1,320 per tonne from $920-$950 per tonne a week ago in the international market including China.
"The PTA and MEG prices have soared by more than 26 per cent as supply crisis in cotton markets has spurred substitution demand for polyester in the international market. This has resulted in a price bubble in polyester yarn," said a yarn producer.
The increased cost of polyester fabric is likely to boost the retail price of saris and dress material by about 30 per cent on all the ranges starting from Rs 150 to Rs 10,000 and above.
"This is the highest ever increase in PFY prices and it is going to have an impact on the entire polyester chain. The production cost would go up because of escalating PFY prices and we would be forced to increase the prices of sari, fabrics and dress material," said Pramod Chaudhary, chairman of Pratibha Industries, a leading manufacturer and exporter of sari and dress material.
Devkishan Manghani, president of Federation of Surat Textile Traders Association (FOSTTA), said, "It is the worst nightmare for the traders and retailers to up the prices in the festive season. Retail stores would be reluctant to raise prices because consumers will cut back on spending as the festive season is coming to an end."
Source: Times of India
Market observers believe saris, polyester fabric and dress material manufactured in the textile city would be costlier by almost 30 per cent from their original price at present. Reason: The front and the second line spinners have increased the prices of PFY by Rs12 to Rs 14 per kg in the last two days.
"This is the highest ever increase in polyester yarn price," said Nilesh Mandlewala, immediate past president of Southern Gujarat Chamber of Commerce and Industry ( SGCCI) and a powerloom unit owner. "We have no option but to extend the Diwali vacation by another five to six days," he said.
Arun Jariwala, chairman of Federation of Indian Art Silk Weaving Industry (FIASWI), said, "Polyester yarn is the main raw material for polyester fabrics like sari, dress material etc. manufactured by the weavers. The unprecedented price hike will increase the production cost for the powerloom units and it will have a chain effect on the entire man-made fabric industry."
Robust demand, partly driven by speculations in the global market, has sent prices of Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) - main raw material for the polyester yarn - soaring at an unprecedented pace and is feared to create a bubble in the entire polyester industry chain including that in India and China.
Sources said the PTA prices climbed to a record high of $1,280-$1,320 per tonne from $920-$950 per tonne a week ago in the international market including China.
"The PTA and MEG prices have soared by more than 26 per cent as supply crisis in cotton markets has spurred substitution demand for polyester in the international market. This has resulted in a price bubble in polyester yarn," said a yarn producer.
The increased cost of polyester fabric is likely to boost the retail price of saris and dress material by about 30 per cent on all the ranges starting from Rs 150 to Rs 10,000 and above.
"This is the highest ever increase in PFY prices and it is going to have an impact on the entire polyester chain. The production cost would go up because of escalating PFY prices and we would be forced to increase the prices of sari, fabrics and dress material," said Pramod Chaudhary, chairman of Pratibha Industries, a leading manufacturer and exporter of sari and dress material.
Devkishan Manghani, president of Federation of Surat Textile Traders Association (FOSTTA), said, "It is the worst nightmare for the traders and retailers to up the prices in the festive season. Retail stores would be reluctant to raise prices because consumers will cut back on spending as the festive season is coming to an end."
Source: Times of India
