Ludhiana Textile Industry Faces Severe Stress as Costs Soar and Demand Slows
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The textile industry in Ludhiana — long recognised as one of India’s premier manufacturing hubs — is facing mounting pressure from rising production costs, supply chain disruptions and sagging demand in both domestic and international markets.
According to local manufacturers, the prices of key synthetic fibres such as polyester, nylon and spandex have surged between 20% and 30% in recent weeks. For example, polyester prices climbed from approximately ₹115 per kg to around ₹165–₹170 per kg — a spike that has substantially increased production expenses for fabric and garment makers.
“It has become extremely difficult to run the industry as prices of yarn and fibres have surged,” said garment manufacturer Simranjit Singh based on Bahadarke Road.
Cost Pressures Hit Both Synthetic and Natural Fibres
While crude oil–linked synthetic fibres have borne the brunt of cost increases, natural fibres like cotton and rayon have also become significantly more expensive due to rising input and production costs. Cotton yarn, for instance, is reported to have risen from around ₹260 per kg to nearly ₹292 per kg.
Adding to the industry’s woes is the sharp increase in packaging costs, with plastic-based materials — such as polybags used for logistics and exports — witnessing price jumps of up to 40%.
Supply Chain and Logistics Challenges Worsen Situation
Industry leaders point to ongoing global logistics challenges and geopolitical tensions as key contributors to cost spirals. Rising freight charges and increased transportation costs have only deepened the financial stress on textile units, many of which operate on thin profit margins.
Demand Slows Sharply Amid Economic Uncertainty
Beyond cost concerns, manufacturers are struggling with weakened market demand. Both domestic buyers and overseas clients are opting to reduce or delay orders, citing economic uncertainties and inflationary pressures. Amit Jain, Chairman of the Confederation of Indian Industry (CII), Punjab, highlighted the dual challenge of escalating costs and shrinking demand.
“The cost of raw materials has increased significantly, yet customers are delaying or reducing orders due to market uncertainty,” Jain said.
Labour Shortages Compound Operational Challenges
On top of financial strains, the industry is also grappling with labour shortages. Manufacturers report that nearly 20% of workers did not return to work after the festive season, exacerbating operational challenges. Disruptions in the availability of industrial fuel such as gas cylinders have further impacted production schedules.
Calls for Government Support Grow Louder
Business leaders in Ludhiana are increasingly urging government intervention to mitigate the crisis. Proposals include the establishment of an industry redressal forum to address issues such as black marketing of raw materials and to offer targeted relief to struggling manufacturers.
Experts warn that if the current trends continue without policy support, the textile sector could face deeper stress with broader implications for the regional economy.
04:20 PM, Apr 01
Source : Ludhiana Textile Industry Faces Severe Stress as Costs Soar and Demand Slows
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