FPJ Exclusive: Bhiwandi Powerloom Crisis Deepens As Yarn Prices Surge, Demand Slumps, Units Near Shutdown

Bhiwandi, March 26: Bhiwandi’s powerloom sector, once a symbol of relentless industrial rhythm, now finds itself at a critical crossroads. On one side lies the mounting pressure of rising input costs, while on the other, a sharp decline in market demand continues to erode profitability. The constant hum of power looms once operating round the clock has begun to fade, replaced by uncertainty and slowing production cycles.

Unsold stock and slowing orders

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Warehouses across the textile hub are increasingly filled with unsold grey cloth, while fresh orders have nearly come to a standstill. A combination of global instability, raw material shortages, and escalating local costs has significantly disrupted the industry’s momentum. The situation has become so severe that several units are now contemplating halting production altogether.

Sharp rise in yarn prices

One of the primary drivers of this crisis is the steep rise in synthetic yarn prices. In recent weeks, yarn rates have surged by Rs 30 to Rs 35 per kilogram, placing an enormous burden on manufacturers.

Meraj Ansari, owner of Ayub Textiles, explains that his unit produces “Raymond-quality” grey cloth using micro and 40-denier polyester yarn, typically in high demand during the school and college uniform season. However, this year has brought an unexpected downturn.

We have nearly 3,000 rolls of finished fabric lying unsold in our warehouse. There are no inquiries, no calls. At the same time, the increase in yarn prices has completely disrupted our cost structure. If this continues, we may have no option but to shut down production, Ansari says.

Export slowdown and supply chain impact

Bhiwandi’s textile ecosystem is geographically divided, with western areas such as Nalapar and Khadipar Area primarily producing synthetic fabrics, while the eastern belt focuses on cotton textiles.

A significant portion of this output is processed and supplied not only to domestic markets but also exported to regions including the United States and Europe. However, ongoing global tensions have severely affected this supply chain, leading to a noticeable slowdown in exports.

Disruptions in raw material supply

Industry experts point out that disruptions in global trade have affected cotton imports, while exports continue, resulting in reduced domestic availability of raw materials. Although cotton prices have seen only moderate increases, yarn prices have experienced disproportionate spikes.

Abdullah Khan, a powerloom owner, highlights the sharp escalation across different yarn counts. “Prices have risen by Rs 20 to Rs 34 per kilogram depending on the count. For instance, 92-count yarn, which was priced at Rs 2,060 per five kilograms, is now being sold at around Rs 2,200. Similarly, 64-count yarn has increased from Rs 1,560 to Rs 1,690,” he explains.

He further alleges that spinning mills and traders are using global uncertainties as a justification for arbitrary price hikes.

Gas shortage and labour challenges

The crisis extends beyond raw materials. Dyeing and processing units are also grappling with an acute gas shortage, forcing many to shut down or operate at reduced capacity.

Haji Yar Mohammad Khan of the Julie Group notes that the situation is compounded by labour shortages in spinning mills in southern India, where workers have migrated due to the ongoing gas crisis, further disrupting production.

Weak demand hits workers hardest

Meanwhile, demand in the domestic market remains weak, with no major festive season to stimulate buying activity. This has created a prolonged demand slump, leaving manufacturers with limited avenues to liquidate their stock.

The impact of this downturn is being felt most acutely by workers dependent on job work. Asif Khan, a power loom job worker from Shanti Nagar, says that master weavers have reduced job work rates by 50 to 75 paise per metre, citing increased yarn costs.

“Work was steady until February, but since March, the situation has deteriorated rapidly. With reduced earnings, it has become difficult to manage daily expenses,” he says.

Industry faces double crunch

Experts describe the current situation as a classic “double crunch” scenario—on one hand, cost-push inflation driven by rising raw material prices, and on the other, a demand slowdown in the market.

This combination has made continued production increasingly unviable for many units. If conditions do not improve soon, the industry could witness widespread shutdowns of powerloom units, leading to significant job losses and further economic distress in the region.

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Powerloom owners have urged the government to intervene by stabilising yarn prices, ensuring uninterrupted gas supply, and introducing a relief package for the struggling sector.

For now, Bhiwandi’s powerloom industry remains caught in a cycle of rising costs and falling demand, struggling to find balance in an increasingly uncertain environment.

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