"War causes production loss, serious stress for Indian textile industry", 29 April 2026

India’s textile and apparel industry is facing acute stress as rising raw material costs, weak demand and geopolitical disruptions weigh heavily on operations, with industry leaders warning of an “unprecedented” crisis.

RK Vij, National President of the Textile Association (India) told Fibre2Fashion, “The ongoing US–Israel and Iran conflict has sharply inflated polyester feedstock costs, with prices of PTA and MEG rising 30–32 per cent, However, yarn prices have increased only 12–15 per cent, reflecting subdued downstream demand.”

...global market inputs indicate that polyester producers are paying nearly 30 per cent more for petroleum-based raw materials amid Middle East supply disruptions and higher crude prices, intensifying cost pressures across the value chain.

Nearly 40 per cent of fibre and yarn units in India have shut or reduced operations due to unviable economics and weak demand, Vij said, adding that export shipments are also being hit by rising freight costs and logistical delays.

Dr. Jayesh Pathak, President of the Mumbai Yarn Merchants Association, said...raw material prices have risen by 25–30 per cent while consumption remains slow...

Textile manufacturers in key hubs have reported production cuts and reluctance to procure high-cost yarn, while labour shortages, partly linked to rising living costs, have added to operational challenges...

“This is the second consecutive season where cost pressures may affect export orders, as buyers may not accept price increases,"...