Shortage of dyes in India has resulted in a sharp rise in the price of dyes in a span of 15 days. The situation is too grim as many dyeing factory owners in Delhi-NCR region have started thinking of minimising their operations.
Hike in export of raw material used in dye making, from India to China has resulted in a crisis of material in the country at the time when factories are getting orders for the Spring’ 19 season.
The situation in India would impact global fashion brands, including Zara, Gap, H&M, Old Navy and Marks & Spencer which see India as their manufacturing hub.
“It is not feasible for us to operate when dye prices have reported a 30 per cent increase in price in the last 10-15 days,” reportedly said Vijay Jain, MD of SPS Processors in Faridabad.
India is among the top five global sourcing hubs for British fashion retailer Marks & Spencer while H&M and IKEA have been sourcing from India since long back.
In addition to shortage of dyes, the industry is also facing increase in price of yarn over the last few weeks.
The dye crisis has hit the local industry significantly after it was previously hit due to ban on pet coke and furnace oil, the major ingredients in the dyeing process. Those unable to sustain this pressure have already closed down their operations.
According to report, India’s contribution to the world dye industry is around 12 per cent.
