Polyester yarn prices surge as crude oil reaches $95:Weaving sector may face three-day shutdown if customs duty on yarn is not scrapped

The surge in crude oil prices to around $95 per barrel amid the ongoing tensions in the middle-east has triggered a serious crisis for the textile industry. A shortage of key polyester raw materials, PTA and MEG, has pushed yarn prices sharply higher, putting additional pressure on the industry. Chamber seeks temporary zero customs duty on yarn The Chamber has submitted a representation to Union Textile Minister Giriraj Singh, seeking a 0% basic customs duty on yarn for three months or until crude oil prices fall below $65 per barrel. The industry has warned that if immediate relief is not provided, weaving units, including those in Surat, may be forced to remain shut for two to three days a week. Three key measures sought to revive textile industry The Chamber has sought three major measures from the government: Crude now $25 higher than previous relief period Considering the West Asian situation, the government had earlier waived customs duty on PTA and MEG from April 2 to July 15, 2026, expecting the situation to normalise thereafter. However, crude prices have risen again instead of stabilising. Chamber president Ashok Jirawala said, “Crude is currently around $25 per barrel higher than the level prevailing when the earlier duty relief was granted.”