Coimbatore, March 9 (IANS) The ongoing conflict in West Asia and the disruption of maritime traffic through the Strait of Hormuz have begun to impact India’s textile sector, with polyester fibre prices rising sharply in the past week.
According to industry representatives, the price of polyester fibre has increased by Rs 12 per kilogram, creating fresh concerns for textile manufacturers and exporters. The Strait of Hormuz is one of the world’s most crucial maritime corridors for the transport of oil and cargo.
The recent closure of the route by Iran has forced several cargo vessels to avoid the region and take alternative routes to reach destinations in the Gulf, Europe and the United Kingdom. Ships are now travelling around Africa through the Cape of Good Hope, significantly extending shipping distances and transit time.
Industry leaders say the diversion of cargo vessels is expected to delay shipments by nearly 20 to 25 days. The longer route has also increased freight charges and logistics costs, putting pressure on exporters who depend heavily on timely deliveries to international markets.
Textile exporters fear that delayed shipments may lead to order cancellations or compel manufacturers to sell goods at lower prices to retain buyers. The disruption in shipping has also begun to affect the supply of raw materials used in synthetic yarn production.
As supply chains tighten, the cost of polyester fibre has risen rapidly within a short span of time. Polyester 1.2 denier fibre, widely used in textile manufacturing, is currently trading at around Rs 114.25 per kilogram after the recent increase.
Polyester plays a dominant role in India’s synthetic textile segment and accounts for nearly 75 per cent of synthetic fabric production. Any fluctuation in polyester prices, therefore, has a direct impact on yarn producers, textile mills and garment manufacturers across the country.
Industry stakeholders warn that the current situation could affect India’s garment export market, particularly in West Asia. The United Arab Emirates alone accounts for garment exports worth nearly $2 billion annually from India, while other Gulf countries together import garments worth around $1 billion each year.
India’s textile industry has been witnessing strong growth prospects in global markets, supported by free trade agreements and policy initiatives aimed at boosting exports.
However, the ongoing geopolitical tensions and disruptions to global shipping routes are now creating fresh challenges for manufacturers and exporters, raising concerns about rising production costs and delays in international trade.
–IANS
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