Surat: The country’s biggest man-made fabric industry is passing through a tough phase with the production of polyester fabric going down by almost 40 percent in last two months. This has happened for the first time in the industry’s history, threatening the existence of small and medium players in the weaving and processing sector.
The reason is a phenomenal 50 percent increase in the prices of polyester filament yarn — main raw material for the man-made fabric industry — since November-2010 due to the increase in crude oil prices and increasing demand in the export markets like China, Pakistan, Europe, North America, etc.
“The alarm bells have started ringing for the man-made fabric industry here. If the price rise will continue for a couple of months, then many weaving and processing units would be forced to down their shutters,” chairman of Federation of Indian Art Silk Weaving Industry (FIASWI) Arun Jariwala said.