The textile sector in India is facing challenges as the conflict in West Asia and disruptions in maritime traffic through the Strait of Hormuz have led to a significant increase in polyester fibre prices. Industry representatives note a Rs 12 per kilogram rise in polyester fibre prices, causing concerns for manufacturers and exporters. The closure of the Strait of Hormuz has forced cargo vessels to take longer routes, such as around Africa through the Cape of Good Hope, resulting in delays of shipments by 20 to 25 days.
The diversion of cargo vessels due to the closure of the Strait of Hormuz is impacting the textile industry by increasing freight charges and logistics costs. This situation is pressuring exporters who rely on timely deliveries to international markets. Textile exporters are worried that delayed shipments could result in order cancellations or force them to lower prices to maintain buyers. Moreover, the disruption in shipping is affecting the supply of raw materials used in synthetic yarn production.
The cost of polyester fibre, particularly the widely used polyester 1.2 denier fibre, has surged to around Rs 114.25 per kilogram following the recent price hike. With polyester playing a crucial role in India’s synthetic textile segment, any price fluctuations directly affect yarn producers, textile mills, and garment manufacturers nationwide. Industry stakeholders caution that the current scenario could impact India’s garment export market, especially in West Asia, where countries like the United Arab Emirates and other Gulf nations are significant importers of Indian garments.
India’s textile industry, which has been experiencing growth in global markets, is now facing new challenges due to geopolitical tensions and disruptions in global shipping routes. Despite favorable trade agreements and export-focused policies, rising production costs and trade delays are becoming pressing concerns for manufacturers and exporters.
