Weaving units in Bhiwandi face financial issues as raw materials costs escalate

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Maharashtra’s major textile cluster, Bhiwandi is grappling with severe financial issues as the weaving units absorb an unprecedented increase in raw material overheads. Prices of micro, polyester, and specialty fiber variants have gone up almost 70 per cent over a six-month, severely destabilizing operating ledgers for domestic grey-fabric manufacturers.

Stakeholders say, micro yarn prices have risen from Rs 109 to Rs 160 per kg, while full dull and magic yarn variants have seen even steeper increase. Because finished fabric realizations remain low and fail to reflect proportional market corrections, local producers find themselves trapped between increasing expenses and stagnant buyer pricing.

Finished fabric is still being sold much below actual production costs, making continuous operation nearly impossible, says Rehan Ansari, Proprietor, Ayyub Textile. Association representatives have formally petitioned state authorities to initiate rigorous market surveillance regarding supply chains, alleging that artificial price inflation by speculative intermediaries is worsening structural vulnerabilities. Without immediate regulatory intervention or transparent pricing frameworks, micro-entrepreneurs warn that widespread production shutdowns could paralyze the regional supply network.

Bhiwandi is one of India’s major decentralized powerloom and grey-fabric weaving hub, catering primarily to domestic apparel markets. The sector is modernizing while look at cluster-wide stability, though recurring margin dip and liquidity constraints continue to challenge its financial outlook since its establishment.