Ludhiana dyeing industry bears the brunt of rise in raw material rates

After impacting different sectors, including the bicycle and auto parts’ makers among others, the rising prices of raw material amid the Covid-19 pandemic have also taken a toll on the dyeing industry, which has now been forced to increase the rates of dyeing fabrics.

Citing 20% to 25% hike in prices of raw material, the Ludhiana dyeing industry has increased the rates of fabrics. The price of dyeing polyester fabric has been increased by ₹3/kg, while that of dyeing cotton fabric has been hiked by ₹5/kg.

The industrialists have also pointed out that the prices might further increase after the two common effluent treatment plants (CETP) being set up to treat the waste of dyeing industry on Tajpur Road become operational.

The decision was made during the meeting of local dyers’ body on Tuesday evening. The new rates will be applicable from January 15.

President of Ludhiana Dyers’ Association, Ashok Makkar said, “The prices of raw material being used by the dyeing industry, including chemicals, has increased up to 25% since the pandemic hit the country. The supply of raw material is also low as it was mostly imported from China. There are around 300 dyeing units in Ludhiana and the industry was forced to increase the rates as it was becoming difficult for us to survive. Despite that, we have made a nominal hike in rates.”

Hike to impact hosiery sector

The hike in dyeing rates has added to the woes of the hosiery industry as well, which is already struggling due to the increase in the price of yarn.

President of Knitwear Club, Darshan Dawar, said, “The rates of yarn have increased by more than 25% during the pandemic and now, the dyeing industry has also upped the price. The recent increase in rates will have a nominal effect, but the cost of end products will go up, which will push the customers away. The hosiery sector is going through a tough phase.”

Gas supply sought

After the dyeing industry was accused of causing air pollution, it has asked the government to arrange natural gas or CNG for the units.

A dyeing unit owner, Rahul Verma, said that gas is being supplied in Doraha and the government had also allotted a project to install a gas pipeline in Ludhiana city, which has not been commenced yet.

In December, MLA Sanjay Talwar had accused the industry of polluting the air and also gave a list of 28 dyeing units, blaming them for air pollution.

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