Weavers expect yarn prices to fall as crude oil prices plummet

The powerloom weavers of Surat, he country’s biggest man-made fabric (MMF) sector are buoyant following a dip in crude oil prices in the international market as it may decrease the yarn prices.

According to Industry sources, the crude oil prices have dipped below $92 per barrel in the international market which is the basic raw material for polyester yarn. This is going to put pressure on spinners to decrease the yarn prices.

Federation of Gujarat Weavers Association president Ashok Jirawala said that it is a good news that the crude oil prices have decreased. They expect the yarn prices to fall by almost Rs 7 per kilogram. The weavers expect further reduction in the yarn prices.

The weaving sector is presently passing through a tough phase following dwindling demand for polyester fabrics in the key markets in the country, increasing prices of yarn and over production among other things.

Despite the ensuing festive season, the textile market is looking dull with the demand for polyester saris and dress materials falling in Uttar Pradesh, Punjab, Bihar, Kolkata and Maharashtra.

According to Ramesh Godsawala, an expert on yarn market, the market is facing a severe financial crisis. Fashion trend has changed a lot in the country and the buyers want new fabric qualities. But the weavers are still manufacturing the same old fabric qualities, manufactured 20 years ago. The decrease in yarn prices would encourage the weavers to try out new fabric qualities ahead of the Diwali festival.