Just days after the textile industry in Tamil Nadu welcomed the reversal of higher US tariff rates, exporters and processing units are now grappling with a fresh challenge- a sharp increase in raw material prices triggered by the ongoing West Asia crisis.
Industry sources said the surge in the cost of key inputs used in textile processing and garment manufacturing is already beginning to ripple across the supply chain in the Tiruppur, India’s largest textile cluster.
Rajkumar Ramasamy of Best Corporation Private Limited said the spike in raw material costs could affect the global competitiveness of the Tiruppur knitwear industry.
“These are uncertain times and the industry is facing one challenge after another. Polyester supply itself is affected, which in turn impacts synthetic fabrics, sewing threads and other inputs,” he said.
Kumar Duraisamy, Managing Director of Tiruppur-based Eastern Global Clothing, said the cost of polyester fibres has increased by about 6 per cent, while the prices of textile dyes, finishing chemicals, solvents and auxiliaries have also moved up. Coal prices used by textile processing units have increased by about 30–35 per cent, he said, adding that these increases together have pushed up garment manufacturing costs by nearly 5 per cent.
The Tiruppur dyeing industry has announced an increase in charges following a steep rise in the prices of essential chemicals and fuels used in textile processing.
According to industry representatives, polyester prices have also increased sharply following a rise in yarn costs, with polyester prices going up by about ₹14 per kg or 20 per cent in recent days.
P Gandhirajan, President of the Tiruppur Dyers Association and Managing Director of Tiruppur-based Atul Process, said the escalation in geopolitical tensions in West Asia has significantly disrupted supply chains and pushed up prices of major raw materials used in dyeing and processing.
“Due to the abnormal circumstances and tensions arising from the West Asia conflict, the prices of all major raw materials have increased extraordinarily, making it difficult for the industry to continue business as usual,” he said.
He said the prices of several key chemicals used in textile processing — including hydrogen peroxide, acetic acid, caustic lye, soda ash and sodium sulphate salt — have risen sharply. As a result, dyeing units have been forced to increase processing charges. The dyeing cost will increase by ₹10 per kg for bleaching and light colours, ₹15 per kg for medium colours and ₹20 per kg for dark colours, he said.
The industry is also facing higher energy costs. Gandhirajan said the suspension of commercial and industrial gas supply and a rise in the cost of firewood used by dyeing units have added to the burden.
However, exporters say passing on these costs to international buyers will be difficult. “At this juncture it is very difficult to increase prices. However, since the West Asia crisis has a global impact, buyers may consider a small increase, but not the full increase that we are incurring,” Duraisamy said.
Open end spinning mills have been severely affected by polyster price hike. Nearly half of the open end mills use polyster fibre as main raw material. In March, Indian polyster companies raised polyster cost four times. Normally they fix price every 1st and 15th of the month. However, due to West Asia crisis, in every two day once they increased, said G Arulmozh. President, Open End Spinning Mills Association.
Published on March 11, 2026