The cost of synthetic fiber has been rising after the sharp fall in the rupee. Simultaneously, cotton prices have also increased. Rupee fluctuations will be the deciding factor for raw material prices in the next few months. Any fall in the currency will stem imports especially if the product is meant for local consumption rather than re-exports. 

An increase in raw material costs has been a big hurdle for fabric makers in India.  However, one bright spot is rising export demand. This allows them to pass on the increase in raw material costs. Yarn-weaving companies in particular are optimistic about passing on costs by increasing prices, as the overall scene seems to be improving. 

A large integrated textile company involved in cotton and synthetic fabrics quotes new fabric prices with every order as the demand scene is looking good. Weavers hope demand for textiles looks up in view of the upcoming festivals and a good monsoon. They also feel rising export orders could help raise fabric prices. 

If synthetic yarn prices remain high, at some point, incremental demand could start shifting to cotton yarns. But if both cotton and man-made fiber remain costly, users will have few choices.