Bhiwandi Yarn Prices Up 60–70% in Six Months; Mumbai Powerloom Belt Under Pressure

By BizTorq News Desk, Surat · 14 October 2026 · 1 min read

Weavers and grey-cloth traders in Bhiwandi, the powerloom hub near Mumbai, say prices of several yarns have risen 60–70% since March 2026, while finished cloth is selling below cost. They want the government to examine the yarn market and review fabric imports.

Bhiwandi, the large powerloom cluster in Thane district near Mumbai, is facing a sharp squeeze on margins. Merchants and loom owners say prices of several yarn varieties have climbed 60–70% over the six months since March 2026, according to reports published on 23–24 September.

How much yarn prices have moved

Figures shared by Shehzad Ansari of Sadeya Textiles show the scale of the increase, per kg:

Micro yarn: ₹109 to ₹160
Full dull: ₹118 to ₹178
Polyester: ₹150 to ₹225
Magic yarn: ₹155 to ₹235
Cotton yarn: ₹270 to ₹355

Rehan Ansari of Ayyub Textile says micro and polyester yarn alone rose close to 50% between February and September, while finished grey fabric is selling around 30% below its cost of production. Weavers say they cannot pass the full increase on to buyers.

Months of strain

The pressure has been building since early in the year. In March, Bhiwandi units reported that fresh orders had nearly stopped, unsold grey cloth was piling up in warehouses, and master weavers had cut job-work rates by 50–75 paise a metre. Gas shortages at the time also forced some dyeing and processing units to cut output.

Nirav Seth of Kanhaiya Textiles points out that many small units in Bhiwandi, as in Surat, Ichalkaranji, Malegaon and Erode, run on loans and monthly instalments, which become harder to service when costs rise and sales fall.

What traders are asking for

Government monitoring of the yarn market and an inquiry into the price rise. Firoz Nawab of Nawab Textiles alleges that some large agents in Mumbai and Gujarat profited heavily; this is a trader's allegation and has not been investigated.
A transparent system to publish prevailing yarn prices, suggested by Mahendra Bind of Maa Sheetla Transport.
A review of finished-fabric imports from China, Indonesia and Taiwan, which traders say enter India through Mumbai, Surat, Ahmedabad and Delhi.
Attention to costs and liquidity in existing clusters, not only new textile parks.

The complaints closely mirror those from Surat, where weavers report yarn prices up 35–40% and some are considering an early Diwali break.

What it means for Surat traders

Buyers of grey fabric from Bhiwandi may find weavers more willing to negotiate on payment terms than on price, since many are selling below cost to keep cash moving. Mumbai and Surat traders sourcing synthetic fabric should expect continued price firmness until yarn rates ease, and should check stock age and quality when cheap imported fabric is offered as an alternative.

Questions traders are asking

How much have yarn prices risen in Bhiwandi?

Traders say several varieties are up 60–70% since March 2026; for example polyester yarn moved from ₹150 to ₹225 a kg and micro yarn from ₹109 to ₹160 a kg.

Why are Bhiwandi powerloom units in trouble?

Yarn costs have risen sharply while grey fabric is selling about 30% below production cost, orders are weak and many small units depend on loans.

What are Bhiwandi traders asking the government for?

Monitoring of the yarn market and an inquiry into the price rise, a transparent yarn price system, a review of finished-fabric imports, and support for existing clusters.

Sources

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