Surat’s polyester yarn market shows mixed growth trends

The polyester yarn market in Surat is showing mixed growth trends, driven by domestic policy and international trade dynamics. Spinning mills in the city have slightly raised prices for specialty polyester yarn in the days leading up to the new GST rate cut, which is set to take effect on September 22. This move is designed to boost margins before the tax reduction, after which prices are expected to ease. Meanwhile, the market for polyester spun yarn remains stable. The overall market sentiment is mixed, with demand holding steady in other major textile hubs like Ludhiana and cotton prices staying within a tight range in North India.

Despite the positive domestic outlook, the industry is grappling with a steep 50 per cent tariff imposed by the US on Indian imports, which took effect in late August. This has made Indian textiles far less competitive against those from rival countries. In response, the Indian government has launched a strategic plan to diversify exports and is actively pursuing new markets in 40 different countries, including key economies in Europe and Asia.

 While some export-oriented units have been hit hard by the US tariffs, the industry hopes, ongoing trade negotiations between India and the US may lead to a resolution. Simultaneously, the GST rate rationalization is expected to significantly boost the domestic market, helping to offset losses from the export sector.