Unravelling Ludh textile industry needs stitch in time

Ludhiana: Known as the hub of the textile industry, Ludhiana is facing mounting pressure of high raw material costs, disrupted supply chains, and weakening demand in both domestic and international markets. According to industrialists, price of fibres derived from crude oil such as polyester, nylon, and spandex have witnessed a steep increase of around 20% to 30% in recent weeks. "It has become extremely difficult to run the industry as prices of yarn and fibres have surged," said Simranjit Singh, a garment manufacturer from Bahadarke Road."Polyester prices have increased from around Rs 115 per kg to Rs 165 to Rs 170 per kg. Price of Nylon fabric has gone up from Rs 175 per metre to about Rs 210, while spandex prices have also risen by nearly 20%," he added. Manufacturers say the crisis is not limited to synthetic fibres alone. Even natural fibres like cotton have become costlier due to increased production costs and supply constraints. Cotton yarn prices, for instance, have risen from Rs 260 per kg to around Rs 292 per kg.Confirming the trend, Sudarshan Jain, president of Knitwear and Apparel Manufacturers Association of Ludhiana, said the rise in prices has been across the board. "Prices of all fibres — synthetic as well as natural — have increased by at least 20%. Even cotton and rayon, which are not crude oil derivatives, have become more expensive," he said.Adding to the burden is the sharp increase in packaging costs. Polybags and other plastic-based packing materials, widely used for logistics and exports, have seen price hikes of up to 40%. "The price of a single polybag has increased from Rs 2 to around Rs 3.15 to 3.5. All PVC-based packing materials have become significantly costlier," Simranjit Singh added.Industry players attribute the rise in input costs not only to crude oil-linked disruptions but also to higher shipping and freight charges. With global logistics affected by geopolitical tensions, the cost of transporting raw materials has surged, further inflating production expenses.However, what worries manufacturers even more is the slowdown in demand. Buyers, both domestic and overseas, are placing smaller orders or delaying purchases due to rising prices and global economic uncertainty.Amit Jain, chairman of Confederation of Indian Industry (CII), Punjab, said the industry is facing the dual challenge of rising costs and declining demand. "The cost of raw materials, including fibres, has increased by 20% to 30%, while chemicals and dyes have gone up by nearly 30%. At the same time, customers are either delaying or reducing orders due to uncertainty in global markets," he said, adding that if the situation persists, it could have wider economic implications. "With the cost of living rising globally, demand is weakening. If this continues, we could be looking at the possibility of a global recession," he added.That is not all, the sector is also facing labour-related challenges. According to manufacturers, nearly 20% of workers have not returned after the festive season due to uncertainty and operational disruptions, including shortage of industrial fuel such as gas cylinders. "Workers usually return after Holi and Eid, but this time, many have stayed back due to the prevailing situation," said Sudarshan Jain.With rising costs, shrinking orders, and labour shortages converging at once, Ludhiana's textile industry is bracing for a prolonged period of stress. Industry stakeholders warn that unless geopolitical tensions ease and supply chains stabilise, the situation could worsen in the coming months.The impact of rising prices of products and shipping is being felt across sectors. Ranjodh Singh, an auto parts manufacturer and exporter, said ripple effects are being felt across industries. "Prices of various raw materials are increasing, even those not directly linked to crude oil. Steel prices, for instance, have risen by Rs 5 per kg," he said. He stressed the need for govt intervention to support industry during the crisis. "The govt should set up an industry redressal forum to address immediate concerns and make complaints against black marketing," he suggested.
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