Majid Nami, the senior advisor of the Union of Textile and Apparel Producers and Exporters of Iran, reported a 72.2% increase in clothing inflation in the twelve months leading up to October 2026. According to him, the rise in production costs is due to disruptions in the supply chain of raw materials, rising exchange rates, and transportation issues.
Dynamics of inflation and challenges in securing raw materials
Nami pointed out the significant share of raw materials in the final price of clothing, stating: "Depending on the type of product manufactured, about 50 to 70 percent of the total cost of clothing is allocated to the cost of securing raw materials." He added: "Securing these raw materials, especially in the fiber production sector, has faced numerous challenges."
Cotton and viscose imports affected by war and transportation crisis
Nami further explained: "Cotton, polyester, and viscose are among the most important fibers used in the textile industry. About 70 to 80 percent of the cotton needed by the country is supplied through imports, and viscose was previously entirely imported. Disruptions in transportation from China have led to shortages of this raw material in the domestic market."
He also referred to the challenges in securing polyester, saying: "Iran previously had a comparative advantage in polyester production, but damage to parts of the petrochemical sector during the war has affected the capacity to supply raw materials for this chain and has led to a sharp increase in prices."
Rising transportation costs and their impact on product prices
Nami emphasized: "Currently, to secure part of the raw materials needed for the textile industry, we are forced to import. The cost of transporting a container from China, which was previously about $2,000 to $3,000, has now reached $18,000 to $20,000."
He also mentioned the impact of prolonged import times on clothing production costs, stating: "In the past, imported shipments reached producers in about a month, but now this time has increased to three to four months. Lengthening import times increases capital lock-up and financing costs for producers."
Economic challenges and complexities of the textile industry
Nami concluded by noting that the increase in clothing prices is not solely due to rising exchange rates, stating: "A significant portion of the increase in sales prices is spent on compensating for production costs. Transportation problems and money transfer issues have also harmed the procurement of imported fabrics and increased production costs."
