TIRUPPUR: The rise in the prices of LPG and petroleum by-products due to the war in West Asia has severely impacted the dyeing units in Tiruppur, which plays a significant role in the district’s industrial sector.
Production has declined by approximately 30% in several dyeing units following a decline in orders from knitwear exporters and domestic manufacturers after the former recently hiked the rates of raw materials — which are petroleum by-products — in response to the rising prices of LPG, coal and firewood.
Most of the fabrics for the knitwear produced in Tiruppur are dyed locally in around 410 dyeing units. Around 2,400 tonnes of fabric are dyed here on a daily basis.
BA Madeshwaran, treasurer of Dyers Association of Tiruppur (DAT), said production in dyeing units has gone down by about 30% over the past few days. “We recently increased dyeing rates by Rs 10 per kilogram for light colour fabrics, Rs 15 for medium colour, and Rs 20 for dark colours as the price of LPG rose from Rs 75 to Rs 200 per kg due to the ongoing war. There is a shortage of LPG too. We are currently receiving only about 30% of the 150 metric tonnes (MT) of LPG required daily,” he said.
Pointing out that the prices of dyes and chemicals used in the dyeing industry have currently risen by approximately 25%, he added, “The price of firewood has risen from Rs 5,000 per tonne to Rs 8,000 per tonne. Furthermore, the price of coal has gone up from Rs 5,000 to Rs 8,000 per tonne.”
It may be noted that the daily requirement of coal for the dyeing sector in Tiruppur is about 450 MT. However, most units here use firewood instead of coal, industry sources said.
Stating that several knitwear exporters and domestic manufacturers still refuse to accept the rate hike, Madeshwaran said, “We cannot continue to incur losses. We provide dyeing services only to those who accept our new rates. This has led to a decrease in production. If the war prolongs, our situation will worsen further. This will also lead to job cuts.”
P Gandhirajan, president of DAT, said, “The dyeing sector is currently in a critical situation. Hence, we have requested certain concessions, similar to the ones granted during the Covid period, including a moratorium on repaying bank loans, from the central government.”