Despite exemptions, yarn prices remain high: Weavers

Surat: Textile weavers in the city have raised concerns over the continued rise in yarn prices, saying there has been no significant correction despite the Centre exempting 40 petrochemical products from customs duty. Yarn manufacturers, however, attribute the prevailing prices to fluctuations in the dollar and global geopolitical factors.Weavers allege that yarn manufacturers are quick to raise prices whenever input costs increase but show little urgency in reducing rates when raw material prices decline. They say the persistent rise in yarn costs has severely affected production and margins in the weaving sector.Yarn manufacturers counter that the customs duty exemption alone cannot determine yarn prices. According to them, prices are influenced by multiple factors, including fluctuations in the value of the dollar and prevailing market conditions. They also claim that most weaving units continue to procure yarn at market rates and that there have been no widespread complaints from buyers.Amid rising yarn prices and shortages of cooking gas affecting workers, several weaving units have begun operating only a single shift or remaining closed for two days a week. Industry leaders said some units facing acute financial stress have already curtailed production.They added that weak demand for textile products has further compounded the problem. The combination of rising input costs and sluggish market demand, they said, has forced many weavers to scale down operations.The developments have raised concerns within the local textile sector, with weavers warning that sustained pressure on production costs and labour conditions could further impact output in the coming weeks."It has been observed that yarn manufacturers are quick to increase prices, but reductions are slow when raw material costs fall. In adverse market conditions, yarn prices should be corrected quickly," said a weaving unit owner.Responding to the criticism, a yarn manufacturer said price corrections are made in line with rapidly changing market conditions. "Earlier, raw material prices used to change after a few days, but now fluctuations are much faster. With raw material costs and the dollar value changing frequently, yarn manufacturers too are operating with reduced margins," he said.