SYDMA implements price hike to counter escalating input costs

The Surat Yarn Dyeing Manufacturing Association (SYDMA) has announced a benchmark price increase of Rs 10 per kg across all dyed yarn categories to halt a sharp rise in operational expenses. Effective immediately, this adjustment follows a rise in production costs driven by heightened processing expenses, packaging, and chemical prices. Manufacturers report, the total cost of production has escalated by approximately Rs 11 per kg, leaving dyeing units with no alternative but to revise their tariffs to sustain fiscal viability. Freight charges have also been revised upward to Rs 2.25 per kg from the previous Rs 1.90 per kg, reflecting broader logistical inflation affecting the South Gujarat textile hub.

Beyond raw material spikes, the industry is navigating significant structural challenges, including a 400 per cent increase in international shipping costs and a reported 50 per cent loss in daily production capacity across several weaving units. Geopolitical volatility in West Asia has particularly impacted the man-made fiber (MMF) segment, where petroleum-derived inputs like polyester have seen price fluctuations of 10 per cent to 25 per cent. The widening price gap between denier categories and the disruption in LPG supplies for labor-intensive processes have squeezed margins to critical levels, states a representative from the association. To manage credit risks, the industry has also tightened payment terms to a 30-day window, with an 18 per cent annual interest rate applicable to delayed settlements, ensuring liquidity remains stable amid the current market turbulence.