The recent increase of Rs. 993 in the price of commercial LPG cylinders has plunged Surat's major textile industry into a deep crisis.
Already struggling with global energy inflation and weak demand, the industry is now facing mounting pressure from additional costs. This was stated by Giridhar Gopal Mundra, associated with the textile industry. He mentioned that the LPG price hike is having the most significant impact on the city's dyeing, printing, and processing sectors, which are highly energy-dependent.
The rise in LPG prices has led to a significant increase in processing costs per meter and per kilogram. Many units have reduced production, while some have even started temporarily shutting down operations. The impact of this increase is not limited to production costs; it is also indirectly affecting workers.
Due to the rising cost of living, there is an increase in the migration of laborers, leading to a shortage of workers in the industry. This is directly affecting production capacity. He noted that Surat's main synthetic (MMF) sector is currently under dual pressure.
On one hand, raw materials, which are based on crude oil, have become expensive, while on the other hand, the increased LPG prices have further raised processing costs. In comparison, the cotton sector is relatively less affected, although it is not entirely immune to rising costs in processing, transport, and dyeing. He also mentioned that the rising costs of yarn and processing could lead to an increase in clothing prices by 15 to 20 percent in the near future.
However, due to weak demand, sluggishness in international markets, and intense local competition, the industry is currently unable to pass this burden onto customers immediately. In the near future, the industry will have to face this increased cost itself, which is bound to impact profits. A gradual increase in processing charges is expected in the coming months, after which price hikes in sarees, dress materials, and ready-made garments may also be observed, especially in synthetic products.
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