Surat textile market has witnessed a pick-up in demand as the festival season nears. Surat traders have reported demand for both gray and processed fabrics. However, prices remained stable.
Buyers from other states are flocking to Surat to buy printed and embroidered fabrics. In fact, in some qualities, there are reported shortages too.
A similar trend is witnessed in Bhiwandi too where demand for gray fabric picked up since last week. However, in Bhiwandi traders are worried about the financial crunch. And traders are awaiting a further pick-up in buying activity.
Sharp rise in crude prices impacts yarn cost in Surat Meanwhile, a sharp rise in the price of PTA and MEG alongwith rupee fall has made synthetic yarn costlier by 15%. Local yarn spinners have increased prices of yarn by almost Rs 10 per kg in the last few days.
This will lead to an increase in overall production cost of synthetic fabrics in the textile industry. Production of synthetic fabrics has come down by almost 50% in the last few months. Daily production of polyester fabrics is pegged at 4 crore metres per day. However, slowdown in market demand resulted in production coming down to less than 2.5 crore meters per day.
Fortunately, as fabric demand takes off, weavers will be able to pass on the price increase to buyers.