Surat’s man-made textile industry is facing higher polyester costs, weak demand and rising operating expenses ahead of the festive season. The latest increase is putting pressure on manufacturers and downstream MSMEs across the textile value chain.

According to the Southern Gujarat Chamber of Commerce & Industry (SGCCI), polyester yarn costs have increased by around ₹20 per kg, including increases at the MELT and POY stages. Industry representatives say manufacturers are finding it difficult to pass the higher costs on to buyers while demand remains subdued.

Surat’s textile sector is a major manufacturing hub for man-made fabrics and yarn. SGCCI describes the city as one of India’s leading man-made textile centres, with more than 6 lakh looms and significant employment across the sector.

The cost pressure comes after recent disruptions linked to the Hormuz crisis and floods, which have already affected production and inventories. The industry reportedly suffered losses of more than ₹200 crore during floods in July, adding to the financial pressure on textile businesses.

Industry bodies have called for measures to improve polyester raw-material availability and pricing. They have also sought temporary exemption from Basic Customs Duty on MEG and PTA to support downstream manufacturers.

With festive orders yet to gain momentum, textile manufacturers in Surat are closely watching polyester prices and buyer demand. The coming weeks could be important for the sector as businesses prepare for the festive selling season.