With cost of inputs rising and exports disrupted, textile units in Perambalur take a hit

Textile manufacturing units in Perambalur district are facing a mounting pressure as raw material prices continue to surge amid the ongoing conflict in West Asia, triggering concerns over production cuts and financial strain.

Industry sources said the prices of key raw materials such as polyester fibre and synthetic yarn, largely derived from petroleum products, have increased sharply in recent weeks. The surge is linked to disruptions in crude oil supply and shipping routes in the Gulf region.

It is said that polyester fibre prices alone have climbed steeply, with similar trends seen across other synthetic fibres used in textile production. The situation has been worsened by delays in imports and escalating freight charges, making it increasingly difficult for small and medium-scale units to sustain operations.

According to C. Balakrishnan, merchandiser of a Karur-based textile company, raw material costs, particularly dyes, have increased by 15% to 30%. Polyester prices have risen by around ₹40 a kg. The prices of other essential inputs, including elastic and packaging materials, have escalated sharply.

He added that unit owners are unable to pass on the increased costs to buyers due to stiff competition, resulting in shrinking profit margins. While many units have reduced production levels, others are operating intermittently to manage rising costs.

Export-oriented units are grappling with disruptions in shipping routes and delays in cargo movement, affecting timely order fulfilment. Freight charges have increased significantly as exporters shift away from Gulf-based airlines, which were previously preferred for their lower costs.

A Karur-based textile company, Stellar Fashion Incorp, which operates a manufacturing unit in Perambalur producing undergarments, has been struggling to stay afloat. The company, which employs around 200 underprivileged women and relies heavily on elastic material, fears the crisis could impact workers’ livelihoods.

If the situation persists, stakeholders fear that the combined impact of rising input costs, disrupted supply chains and weak margins could affect employment in the region, where textile units provide livelihoods to a large number of workers.