As of April 1, 2026, polyester feedstock prices in India surged by approximately Rs. 23 per kilogram, rising from Rs. 80 to Rs. 103 per kilogram, driven by crude oil prices exceeding $100 per barrel amid West Asia geopolitical tensions. This feedstock cost increase directly pushed polyester prices up by 15-20% in March 2026, as petroleum-derived inputs like PTA and MEG constitute about 70% of production costs.

CURRENT STATE

India's polyester pricing is under significant pressure due to feedstock costs linked to crude oil prices above $100/barrel amid West Asia conflict, causing a 15-20% price hike in polyester products. Import duty revisions on polyester fabrics by the Directorate General of Customs on April 1, 2026, and a ₹7000/tonne hike in polyethylene prices by Indian Oil Corporation on March 25, 2026, add to cost pressures. Rising logistics costs and a 20% increase in dye and chemical expenses have compounded overall textile production costs, squeezing margins by 10-15% for domestic yarn makers.

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