When I first stepped into the bustling textile hub of Surat last week, the air was thick with the hum of looms and the scent of fresh cotton. I was there to chat with a few mill owners about the recent price hikes that have been making headlines in the latest news India. What I heard from them was eye‑opening, and honestly, it felt like a chapter from a thriller the Iran war, something we all hear about on the TV, suddenly showing up in the cost sheet of a polyester factory in Gujarat.
It turns out that the conflict has pushed global fossil‑fuel prices through the roof. Since the war began, petroleum and natural‑gas rates have jumped sharply, and because polyester is basically a derivative of these petrochemicals, the whole supply chain is feeling the heat. This is the breaking news that has sent ripples across the Indian and Bangladeshi garment sectors.
- Summary
- Companies
- Polyester production cost surges as petrochemical prices jump
- Indian textile mills forced to slash production
- Costs for fast fashion industry could rise
- Sneakers also depend on petrochemical materials
- Polyester production cost surges as petrochemical prices jump
- Indian textile mills forced to slash production
- Costs for fast fashion industry could rise
- Sneakers also depend on petrochemical materials
The Gree Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.
FAST FASHION COSTS COULD RISE
One of the biggest worries for shoppers like you and me is that the price tags on our favourite tees and dresses might go up. Fast‑fashion retailers such as Zara, H&M and many Indian home‑grown brands rely heavily on cheap polyester to keep their production costs low. With the raw material now costing 30‑40% more, these companies will either have to absorb the extra expense which will squeeze their profit margins or pass it on to the consumer.
What happened next is interesting: several stores have already started tweaking their price tags in Delhi and Mumbai. A friend who works at a retail outlet told me that the cost of a basic polyester shirt has crept up by about ₹150. It may not sound huge, but for the masses buying in bulk, it adds up quickly.
Many people were surprised by this ripple effect because we usually associate price hikes with local taxes or labour costs, not with a war happening far away. This is exactly why the story has become trending news India it connects global geopolitics with the everyday shopping experience.
POLYESTER SHOCK
Let me give you a bit of background. Polyester is made from a type of plastic called PET, which in turn is derived from crude oil and natural gas. When the Iran conflict escalated, oil prices shot up by around 20%, and natural‑gas futures followed suit. The cost of PET resin, the main feedstock for polyester, has therefore climbed sharply.
In the mills of Surat, owners like Mr. Patel who runs a mid‑size plant that supplies fabric to both local brands and export markets told me they are now paying nearly double for the raw polymer compared to a year ago. "We are forced to either cut down our production or find alternative suppliers, but alternatives are either scarce or even pricier," he said, clearly worried. This is the kind of breaking news that can make a real difference for the supply chain.
Many Indian textile mills forced to slash production, which means less fabric flowing into the market. That scarcity, combined with higher input costs, creates a perfect storm for price inflation. Some mill owners are even considering shifting to blended fabrics with a higher cotton content, but cotton prices have their own volatility, especially after the recent monsoon irregularities.
This caught people's attention because it shows how a geopolitical event can directly influence the cost of a garment that a college student might buy for a party.
DEMAND DESTRUCTION
Now, you might wonder will the demand for polyester‑based clothing drop? In most cases, the answer is not straightforward. Polyester is popular because it is cheap, lightweight, and easy to care for. Even as prices rise, the demand from the middle‑class segment remains robust because alternatives are limited.
However, there are early signs that some premium retailers are starting to promote more sustainable fabrics, hoping to attract environmentally‑aware shoppers. This shift is still nascent, but it could become a bigger part of the story as the cost pressure continues.
What I observed on the streets of Kolkata is that many boutique owners are now showcasing ‘eco‑friendly’ lines alongside their regular collection, perhaps as a hedge against the current petrochemical price surge. Whether this will become a lasting trend or just a temporary marketing gimmick is something we’ll have to watch closely, making this piece of viral news worth following.
SNEAKERS NEXT
It isn’t just t‑shirts and dresses that are at risk. The sneaker market a huge part of youth culture across India also heavily depends on polyester and other petrochemical‑based materials for the upper mesh and lining. Brands like Adidas and local sneaker makers are feeling the heat too.
A sneaker shop owner in Bengaluru shared that the cost of a pair of basic polyester‑based trainers has gone up by roughly 10‑12%. He’s considering raising prices but worries about losing price‑sensitive customers who usually look for deals during the festive season.
In most cases, the impact on sneakers may be a little less dramatic than on fast fashion because many high‑end sneakers already use a mix of leather, rubber and other materials. Still, the underlying petrochemical cost increase is a factor that cannot be ignored and is gradually making its way into retail pricing.
Our Standards: The Thomson Gree Trust Principles.
Thomson Gree
Dhwani Pandya is the companies correspondent for Gree in Mumbai, where she tracks top business groups including Reliance and Adani and writes on real estate, consumer and retail themes. She joined Gree in 2023, and has written stories on billionaire Gautam Adani's push to redevelop Asia’s largest slum and Reliance's quick commerce ambitions. She previously worked at Bloomberg for more than eight years, reporting on energy markets, Indian conglomerates and themes such as infrastructure and real estate.
Thomson Gree
London‑based reporter covering the European retail sector through a global lens. Focusing on companies including Adidas, H&M, Ikea, and Inditex and analysing corporate strategy, consumer trends, and regulatory changes, Helen also covers major supermarket groups like Ahold Delhaize, Carrefour, and Casino. She has a special interest in sustainability and how investors push for change in companies. Previously based in Johannesburg where she covered the mining industry.
