High crude oil prices, weak rupee to make synthetic textiles costlier

Operating with a wafer-thin margin, synthetic textile players to pass on the raw material price hike to the consumer

Synthetic fabric and textiles are likely to become costlier by 2-5 per cent due to an unabated increase in their production cost on rising raw material prices following crude oil move and a weak rupee.

Synthetic yarns are made from petrochemicals like DMT, PTA, which are refined from crude oil and usually domestic makers of these raw materials also price them at import price parity. Therefore, Prices of these raw materials for synthetic yarns are rising in the Indian market.

The spurt in raw material price is a clear indication of a proportionate increase in cost pressure for user industries.