KTMEA cites increase in raw material prices, labour shortages, and shipping delays as major challenges for the textile sector

The Karur Textile Manufacturers and Exporters Association (KTMEA) has appealed to the Union and State governments to take immediate measures to support the textile industry, citing mounting operational pressures linked to the ongoing conflict in West Asia.

A resolution adopted during a recent association meeting stated that the textile sector is facing multiple challenges, including rising raw material costs, labour shortages, geopolitical disruptions, and delays in international shipping. The association said these developments have increased financial pressure on textile manufacturers and exporters in Karur.

According to the association, prices of key raw materials used in textile manufacturing have increased by 30% to 60% in recent months. The statement noted that geopolitical tensions involving the United States, Israel, and Iran have disrupted global trade and shipping operations, contributing to higher costs for petroleum-based products, polyester, chemicals used in dyeing industries, polythene, and packaging materials.

The association also stated that delays in international shipments and shortages of imported goods have significantly increased costs associated with dyeing, printing, and other job-work processes within the textile sector.

The meeting, chaired by KTMEA president P. Gopalakrishnan, highlighted concerns over the increase in cotton yarn prices in India by 30% to 40%. The association stated that despite India being one of the leading cotton producers, the present rise in cotton yarn prices appeared to be artificial and without justified reason.

In addition, prices of recycled cotton and polyester blended yarn, which are widely used by the Karur textile sector, were reported to have increased by 10% to 20%.

The association further identified labour shortages as a significant concern affecting textile operations in the region.

“If this situation continues, it could severely affect the operations of the Karur textile industry and affect exports and employment opportunities,” the association said.