The rising price of commercial LPG has adversely affected India’s textile exporters, particularly in units such as Tirupur and Noida, increasing production costs at a time when global buyers are demanding lower prices.
The textile industry largely relies on LPG for processes such as dyeing, finishing and steam generation but the latest price has increased per-unit costs, further impacting already thin margins.
Industry experts noted that the impact is more severe in export-oriented units, where prices are locked in through forward contracts, leaving less scope to pass on the rising costs, which directly affects viability. Commercial LPG cylinder prices were raised by Rs. 993 (US $10.45) on 1st May, in line with elevated international rates.
Exporters emphasise that the hike happened just two days after the conclusion of Assembly polls in five states. A 19-kg commercial LPG cylinder now costs over Rs. 3000 (US $31.56), further squeezing exporter margins.
Tirupur which is known as the knitwear Hub of India exports Rs. 35,000-40,000 crore (US $3.68 billion – US $4.21 billion) worth of knitwear annually across 2,000 garment exporting units.
However, rising input costs risk diverting export orders away from Indian companies, eroding market share and foreign exchange earnings.
Similarly for Noida-based apparel exporters, rising LPG prices has come as a double blow. The Industry is still adjusting to steep and uneven increases in minimum wage rates in Uttar Pradesh, which have raised labour costs without corresponding productivity gains.
The Uttar Pradesh government on 13th April announced an interim hike in minimum wage, raising pay for unskilled workers from Rs. 11,313 (US $119) to Rs. 13,690 (US $144), for semi-skilled workers from Rs. 12,445 (US $131) to Rs. 15,059 (US $158), and for skilled workers from Rs. 13,940 (US $147) to Rs. 16,868 (US $177), effective from 1st April.
The combined burden of rising energy and labour costs is pushing many units, especially small enterprises, towards unsustainable levels.
India’s bulk LPG sales to the industrial sector increased 47% year-on-year to 1.149 million metric tonnes (MMT) in FY ’26, though this segment still accounts for only around 4% of total public sector oil company sales.
