Industry suffers as chemical units shut in China

Manav Mander
Tribune News Service
Ludhiana, April 20 

Local dyeing industry is having a tough time.

Reason: The prices of dyes and chemicals have been increased by almost 30 per cent. 

The input cost is increasing, while customers are not ready to pay the hiked cost accordingly. 

Prices have seen an upward increase after many units in China were shut down due to pollution norms. The pollution caused by the manufacturing process was the main reason that led to the shutdown of units. Ludhiana was importing dyes and chemicals from China, as they were tested and the shutdown of units has caused shortage in the market. Local manufacturers of dyes and chemicals seeing the shortage in the market have also increased their prices.

Ashok Makkar, president of Ludhiana Dyers’ Association and managing director of Punjab Dyers’ Association, said the prices of dyes and chemicals have seen an increase of 30 per cent and the industry is going through a rough patch currently.

“Dyes and chemicals are raw material for the dyeing industry. The local market has high rates as compared to China and after the shutting down of units in China, the rates have increased further. Supply is still coming from China, but it is less and rates are high. Similarly, local producers have also increased the rates of dyes and chemicals,” Makkar said.

He said the input cost has increased, but clients are not ready to give the increased rates. “We cannot shell out money from our own pocket and consumers are not ready to pay,” he said.

Bobby Jindal, general secretary of Punjab Dyers’ Association, said: “Since China is the largest producer of chemicals and dyes, the industry in India has been hit as the production has been decreased in China. Indian dyeing industry is facing a tough time and left with no other option but to increase the prices.

Another industrialist Sanjay Batra said the rates of cotton dyes have seen an upward trend for the last 20-25 days. Cotton dyes have increased by 30 per cent, while acrylic dyes have seen manifold increase. 

“Owing to shortage, we are forced to buy raw material at an increased rate, while the local units are unable to fulfil the orders and seeing shortage in the market they are also increasing the prices,” Batra said.