West Asia war: Elastic prices to rise 25%, to hit undergarment business

TIRUPUR: The Tirupur Elastic Manufacturers and Traders Association has announced a 25% increase in elastic prices starting March 18, citing a sharp rise in raw material costs due to West Asia war. The association, in its emergency general body meeting on Tuesday, decided to reduce production by 50% from Wednesday and halt operations completely from March 25 if the situation does not improve.

Tirupur, a major hub for undergarment manufacturing with an annual turnover of around Rs 10,000 crore in both export and domestic markets, depends heavily on elastic as a key accessory. Elastic manufacturing in India is concentrated in Surat, Kolkata and Tirupur. Around 200 units operate in Tirupur. The sector provides direct and indirect employment to more than 10,000 workers in Tirupur alone.




According to association president R P Govindasamy, the industry is under severe stress due to escalating raw material prices. “Rubber prices have increased by 15% and polyester yarn by 35%, pushing the sector towards a crisis,” he said.

Polyester yarn, which was priced at Rs 103–104 per kg, is now being sold at Rs 135–137 per kg, while rubber prices have risen from Rs 235 per kg to Rs 280 per kg. “With prices rising by Rs 6–7 daily, it has become impossible to take new orders,” he added.

He said the shortage of dyed yarn used in woven elastic, along with LPG constraints disrupting heat-setting, has increased costs and hit production.

With polyester yarn accounting for 60% and rubber 40% of elastic production, the spike in input costs has significantly increased manufacturing expenses. “Despite some exporters supporting us by reducing their margins, we are prioritising emergency shipment orders using available LPG stocks,” Govindasamy said.

He said volatile raw material prices and LPG shortage had made consistent pricing unviable, forcing firms to sell at rates different from purchase orders.

The LPG shortage has also impacted workers, many of whom are from other districts and states, as units are unable to arrange adequate food facilities for them.

Highlighting the broader impact, Govindasamy said even a small component like elastic is crucial to garment production. “A pyjama stitched at Rs 194 is incomplete without elastic worth Rs 6. Any disruption in elastic supply will affect the entire supply chain,” he said, warning of potential job losses if the crisis persists.