Polyester from the Gulf
Many of Karur’s tablecloths, curtains and bedspreads blend cotton yarn with polyester fibre, which is made from petroleum and largely imported from Gulf countries. In March 2026, as conflict involving Iran, Israel and the US spread, those imports largely stopped and ships were stranded.
Old prices, new costs
Fibre that cost about ₹112 a kilo rose nearly 40%. Exporters had already agreed prices with buyers in the US and Europe. Filling those orders at the old price, with fibre at the new price, could turn profitable contracts into losses of several crore rupees, and finished goods still had to find a ship.
An exporters’ leader asked the Prime Minister to step in diplomatically and to help control raw-material prices.
A fixed selling price and a floating input price is a bet, whether you meant to make it or not.
Where the risk sits
Karur’s trade is buyer-driven: prices are fixed months ahead, and the exporter carries the risk of everything that happens before shipment. Every war, tariff and shipping delay is felt here first. The firms that come through such shocks best tend to know their cost per piece at today’s input prices, not last month’s.
Points for a finance reader
- Add a price-change clause. Link part of the selling price to fibre or yarn prices in long contracts.
- Re-cost at today’s prices. Your cost sheet is only as good as the input prices in it. Update it when they move.
- Keep a few weeks of key stock. A buffer of fibre costs interest, and can save an order.