Surat, April 4: Amid global conflicts and soaring crude oil prices, the central government has made a significant decision to revitalize the textile and plastic industries. The government has reduced the basic custom duty on over 40 key petrochemical raw materials, including PTA and MEG, from 7.5% to zero. This relief will be in effect for the next three months (April, May, and June). The business community in Surat has welcomed this decision, calling it a ‘positive boost.’
Nikhil Madras, president of the Southern Gujarat Chamber of Commerce and Industry, noted that crude oil prices have doubled in the past month due to the war, leading to a 30% increase in yarn prices. With the custom duty now at zero, production costs are expected to decrease by 5 to 10%. He mentioned that the effects are already visible, with yarn producers reducing prices by up to seven rupees per kilogram, which is a positive sign for the man-made fiber industry.
According to Bhavin Vora, director of the polymer market, raw material prices surged by 50 to 60% between March 1 and 10, causing many units to struggle with fulfilling old orders. Major companies like Reliance have reduced PET material prices to as low as 5.5 rupees. He praised the government’s initiative as a commendable step to support the MSME sector.
Yarn trader Pradeep Parikh expressed his appreciation for the government’s move, stating that the reduction in yarn prices will enable Surat’s small and medium enterprises to compete in the international market. He predicted a direct positive impact of 7 to 10% in the yarn market due to this decision.
Lalit Sharma, a textile businessman and president of the Textile Youth Brigade, highlighted the industry’s challenges, citing the Iran-U.S. tensions and the closure of the Hormuz Strait, which have stalled exports. He compared the government’s decision to ‘oil in a flickering lamp,’ suggesting it will not only lower prices but also provide breathing space for traders and weavers during this downturn.
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