Archive · 23 Sep 2026
Bhiwandi Textile Units Struggle as Yarn Prices Surge 70%
Bhiwandi is a major textile-making area in Maharashtra.
Many factories there use yarn to make grey fabric.
Traders say yarn has become much more expensive since earlier this year.
Some types of yarn reportedly cost 60-70% more than before.
However, the price of finished fabric has not risen as quickly.
This means some factories may sell fabric for less than it costs to make.
Traders want the government to check whether speculation or unfair trading is affecting prices.
They are also concerned about competition from imported fabric from China, Indonesia and Taiwan.
If the problem continues, weaving, transport, processing and other textile businesses could face financial difficulties.
Traders say several yarn varieties in Bhiwandi, Maharashtra, have risen 60-70% in roughly six months.
Reported increases include micro yarn from Rs 109 to Rs 160 and polyester yarn from Rs 150 to Rs 225 per kilogram.
Powerloom and grey-fabric manufacturers say finished-fabric prices have not kept pace, leaving some products below production cost.
Traders have requested investigations into possible speculation, unfair trading and unexplained yarn-price increases.
Industry representatives also cite imported fabric from China, Indonesia and Taiwan, and warn of wider effects on jobs and textile-related businesses.
- Who
- Bhiwandi powerloom units, grey-fabric manufacturers, traders and other textile-sector businesses.
- What
- The industry is facing financial pressure after reported yarn-price increases of up to 60-70%, while finished-fabric prices remain comparatively weak.
- When
- The sharp increases were reported since March; one trader compared prices from February to September, while others referred to the past six months.
- Where
- Bhiwandi in Maharashtra, with possible effects across textile centres including Surat, Ichalkaranji, Malegaon and Erode.
- Why
- Raw-material costs have risen faster than finished-fabric prices, while manufacturers also face competition from imported fabric and subdued demand.
- Reported yarn increase
- Traders say prices of several varieties rose 60-70% in about six months.
- Micro yarn
- Reportedly increased from Rs 109 to Rs 160 per kilogram.
- Full dull yarn
- Reportedly increased from Rs 118 to Rs 178 per kilogram.
- Polyester yarn
- Reportedly increased from Rs 150 to Rs 225 per kilogram.
- Cotton yarn
- Reportedly increased from Rs 270 to Rs 355 per kilogram.
- Finished fabric
- One trader said it was selling around 30% below production cost.
- Industry requests
- Traders want transparent price monitoring, scrutiny of market practices and a review of finished-fabric imports.