Surat’s textile industry struggles as China’s yarn production drops 50%:Stakeholders urge Textile Ministry to waive customs duties

India’s yarn manufacturing capacity in key textile hubs such as Surat has been halved due to disruptions in raw material supplies in China. According to an industry estimate, Surat’s yarn manufacturing capacity may have been reduced to around 50%, negatively impacting its textile industry. Weavers face higher yarn costs With Chinese imports disrupted, local yarn spinners are allegedly charging weavers higher prices. Prices of key raw materials, such as MEG, PTA, Melt, POY and FDY, rose around 1.5 times their normal levels. Meanwhile, to address the issue, a campaign to send over 5,000 emails to the Textile Ministry has been launched, seeking immediate waiver of customs duty. Advised to buy yarn only as required Amid the price surge, weavers have been advised to calculate fabric deals based on prevailing peak yarn rates. Industry members fear that if the situation continues, weaving units may be forced to take holidays during Diwali. To manage costs and remain operational, weavers have been advised to purchase yarn only when urgently required. This is how the price hike occurred Weavers advised to buy yarn only according to requirements Weaver Mahendra Ramoliya said, “Companies are currently forming cartels and raising yarn prices at will. Large manufacturers are increasing rates arbitrarily, leaving weavers with little choice but to purchase only the quantity they immediately need. Buying excess stock could expose them to significant losses if prices fall.” Textile industry seeks zero basic customs duty Chamber Textile Task Force president Ashish Gujarati said, “The textile industry needs to unite to curb the alleged arbitrary pricing by local yarn spinners and facilitate imports. Basic customs duty on polyester yarn and raw materials should be reduced to zero to help control prices.” Meanwhile, Surat’s weavers and textile organisations plan to send 5,000 emails to the Textile and Finance Ministries to highlight their concerns.