Surat dyed yarn makers raise prices amid rising costs

Surat: Members of the Surat Yarn Dyeing Manufacturing Association (SYDMA) have unanimously decided to increase prices of various dyed yarn products, citing a sharp rise in production and input costs.

The association said the overall cost of production has increased by nearly Rs 11 per kg due to higher processing expenses and a rise in the prices of raw materials used in dyeing operations. In view of the current situation, members have agreed on an average price hike of Rs 10 per kg across different dyed yarn categories.

Association representatives said the exact increase would vary depending on the quality and type of dyed yarn, but the Rs 10 per kg hike would serve as a common benchmark to help units cope with escalating costs.

Manufacturers said freight expenses have also increased, adding to the financial burden on dyeing units. Freight charges, which earlier stood at Rs 1.90 per kg, have now risen to Rs 2.25 per kg due to higher transportation costs.

Industry members also pointed to widening price gaps between different denier categories as another factor driving up costs. For example, the price difference between 110-denier and 115-denier yarn, which was around Rs 12 earlier, has now increased to nearly Rs 15, impacting manufacturing economics for dyeing units.

Despite the price revision, the association said existing payment terms would remain unchanged, with the credit period continuing at 25 to 30 days.

Surat has around 160 dyed yarn manufacturing units and remains one of the country’s major suppliers of dyed yarn.

“The prices of raw materials and various processes involved in dyed yarn manufacturing are continuously rising, and under the current circumstances we have no option but to increase prices,” said Lucky Singhi, president of SYDMA.