Across the loom: Yarn, dyes, and logistics costs surge amid West Asia tensions

Textile production costs soar due to rising yarn, dye, and logistics expenses amid West Asia tensions, impacting the entire supply chain.

Production costs in the textile industry have risen sharply, driven by increases across key inputs, from yarn and chemical dyes to processing charges, amid tensions in West Asia. As many of the materials used across the textile chain, including polyester, nylon and several dyeing chemicals, are derived from petrochemicals, the impact has been felt across multiple stages, with processing units raising their charges. Logistics costs, too, have increased significantly.

Those in the textile and garment business told The Hindu that the increase is already being felt across the supply chain. If the situation persists for another week, they said, the pressure is likely to reflect in fabric and garment prices. 

Processing units, which handle dyeing, washing and finishing of fabric, have increased job work charges (service fee charged for processing raw material) from ₹1 to ₹3 per metre. The cost of colour and chemical inputs has also risen sharply, in some cases by up to 60%, said trade activist Sajjan Raj Mehta.

He added that prices are rising at every stage, worsening the burden on the industry, which depends on inter-State operations. Fabric is often sourced from one State, while processing is largely carried out in hubs such as Surat. “Logistics costs have increased to ₹600-650 from ₹400 per load, and beyond that, many units are not willing to take new orders,” he said. 

Yarn prices have increased by 20% to 40%, said Mahaveer Raj Purohit, another manufacturer. Grey fabric (the unfinished base material) has seen a rise of up to ₹5 per metre. As fabric passes through multiple stages before reaching the market, these increases are beginning to accumulate and are likely to reflect in overall costs if the situation continues, he said.

Traders said that many wholesalers have begun insisting on only “cash transactions” for buyers to reduce risk.