Dyeing units in Ludhiana have decided to increase their rates. One reason is increasing raw material prices, in particular, color prices. Earlier, the dyeing industry was able to get colors from overseas but now is totally dependent on the Indian market. Golden yellow color which was Rs 500 per kg is now Rs 1400 per kg. Blue color, which was available for Rs 1200, is now being sold at Rs 2700 per kg. Wage rates too have risen.
Prices have seen an upward spiral after many units in China were shut down due to pollution norms. The pollution caused by the manufacturing process was the main reason that led to the shutdown of units. Ludhiana was importing dyes and chemicals from China. The shutdown of units has caused a shortage in the market.
This means dyeing of yarn, cloth etc. will be expensive. This has worried the garment industry as well. Garment manufacturers, faced by the rising dyeing rates, will pass on the costs to the consumer. Local manufacturers of dyes and chemicals seeing the shortage in the market have also increased their prices. Now, the industry is dependent largely on the Indian market alone. Owing to a monopoly, dyers here have increased the rates of dyes and chemicals.