Polyester yarn prices surge as crude oil reaches $95: Weaving sector may face three-day shutdown if customs

A shortage of key polyester raw materials, PTA and MEG, has pushed yarn prices sharply higher, putting additional pressure on the industry.

The Chamber has submitted a representation to Union Textile Minister Giriraj Singh, seeking a 0% basic customs duty on yarn for three months or until crude oil prices fall below $65 per barrel.

The industry has warned that if immediate relief is not provided, weaving units, including those in Surat, may be forced to remain shut for two to three days a week.

Considering the West Asian situation, the government had earlier waived customs duty on PTA and MEG from April 2 to July 15, 2026, expecting the situation to normalise thereafter.

However, crude prices have risen again instead of stabilising. Chamber president Ashok Jirawala said, “Crude is currently around $25 per barrel higher than the level prevailing when the earlier duty relief was granted.”