Rising yarn prices suppress weavers from procuring it

Surat the country’s biggest man-made fabric (MMF) sector has the highest consumption of yarn material as the entire MMF industry is depended on it for weaving polyester fabrics but the rising yarn prices are holding back weavers from purchased it.

The powerloom weavers in Surat have stopped the purchase of yarn material following the steep increase in the prices by the yarn spinners by almost 20-25 percent in the last few days following the rise in the crude oil price due to Iraq crisis.

In the last one month, the yarn prices have increased by Rs 12 per kilogram. The weavers have stopped purchasing yarn due to overproduction of fabrics.

On the other hand, there is a slowdown in the MMF fabric market in the country due to various factors including rising inflation and the extended monsoon season. However, the textile traders are not purchasing unfinished fabrics due to lesser demand in the domestic market.

The daily production of MMF fabric is pegged at 3 crore meters in man-made fabric (MMF) sector in Surat.

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