Textile Industry Suffers ₹3,000 Crore Loss Due to War
2026-04-09 11:53:58
Textile Industry Hit by Losses Exceeding ₹3,000 Crore; Business Disrupted by War
Kolhapur: The impact of the conflict in West Asia—which has persisted for over a month—is now clearly visible on the state's textile industry. Although the fighting has currently subsided, the industry's financial health has been severely compromised. A sharp increase of approximately 15 percent has been recorded in the prices of raw materials—particularly cotton and yarn. .SIS.
Rising costs, dwindling demand, and sluggish exports have plunged the industry into a grave crisis. According to estimates by the Textile Federation, the state's textile industry has incurred losses exceeding ₹3,000 crore over the past month. To cope with the situation, several manufacturing units have scaled back production; some have shut down a shift, while others are adopting a two-day workweek..SIS.
The prices of man-made fibers—which are derived from crude oil—have also witnessed an increase of approximately 15 percent. Prior to the conflict, the prices of cotton and yarn had remained stable for an extended period, thereby keeping production costs under control. However, the situation has now shifted rapidly.
In the span of just one month, the price of 29mm grade cotton has surged from ₹54,000 per khandi to ₹61,000 per khandi. Concurrently, the price of a 5-kilogram bundle of yarn has risen from ₹1,260 to ₹1,415.
Conversely, the prices of finished garments have seen only a marginal increase. For instance, the price of fabrics such as Poplin has gone up by a mere ₹1 per meter. The decline in demand has created an atmosphere of deep concern within the industry.
Sector-wise Losses:
* Weaving: ₹1,000 crore
* Spinning Mills: ₹800 crore
* Processing: ₹400 crore
* Garments: ₹1,100 crore
Due to this crisis, spinning mills are being forced to halt production for an average of 2 to 3 days. New orders have come to a near standstill, and export activity has also slowed down significantly. .SIS. Following a review by industry associations, textile entrepreneur Kiran Tarlekar has expressed apprehension that the total losses could reach ₹4,000 crore.
