Yarn Prices Surge Up To 70%, Squeeze Bhiwandi Powerloom Sector
A sharp rise in yarn prices since February-March has put Bhiwandi’s powerloom and grey-fabric sector under growing financial pressure, with traders reporting a 50–70 per cent increase in prices of several commonly used yarn varieties.
The surge in raw-material costs has not been matched by finished-fabric prices, squeezing margins for weaving and grey-fabric manufacturers across the cluster.
Micro yarn prices have reportedly increased from Rs 109 to Rs 160 per kg, while full dull yarn has risen from Rs 118 to Rs 178. Polyester yarn has climbed from Rs 150 to Rs 225 per kg, magic yarn from Rs 155 to Rs 235, and cotton yarn from Rs 270 to Rs 355 per kg.
Traders said prices of micro and polyester yarn have increased by nearly 50 per cent between February and September, while finished fabric in some segments is being sold at around 30 per cent below production cost.
Manufacturers are unable to fully pass on higher yarn costs to buyers as grey-fabric prices have not increased at the same pace. The widening gap between production costs and selling prices is putting considerable pressure on the viability of powerloom units.
The industry has called for closer government monitoring of the yarn market and an examination of the factors behind the sharp increase. Traders have also raised concerns over possible speculative activity and the role of large market participants, seeking scrutiny of unusual price movements and any evidence of unfair trading practices or artificial price escalation.
Domestic manufacturers are facing additional pressure from imports of finished fabric from China, Indonesia and Taiwan. Traders said imported fabrics enter the Indian market through major textile centres such as Mumbai, Surat, Ahmedabad and Delhi, adding to competition for domestic producers.
The industry has urged the Centre to review policies governing finished-fabric imports and assess their impact on domestic manufacturing.
Bhiwandi is one of Maharashtra’s major powerloom and textile clusters, with thousands of weaving, processing, trading and ancillary units. Many small and medium-sized businesses operate with bank loans and regular instalment commitments, making them particularly vulnerable to sustained increases in production costs.
Industry representatives said prolonged pressure on margins could affect production and employment, with the impact potentially extending to transporters, warehouses, dyeing and processing units and other businesses linked to the textile supply chain.
Traders have called for a transparent mechanism to monitor prevailing prices of different yarn varieties and provide manufacturers with better visibility of market prices.
They said timely measures are needed to address the widening gap between yarn costs and finished-fabric realisations and prevent further financial stress across Bhiwandi’s textile ecosystem.
