Transport cost for raw textile materials between Bengaluru and major textile hubs such as Mumbai, Surat and Ahmedabad have more than doubled, with rates for a 60-kg shipment now crossing ₹700 compared to ₹300-350 earlier. Adding to this burden is the steep hike in commercial LPG cylinder prices, a main input for textile processing units that depend on it for dyeing and fabric treatment operations.  

With processing units facing a double-whammy, traders say this is likely to push up fabric costs and disrupt the production cycle across the sector.  

Even before the fuel hike was announced, transporters had already increased freight charges in anticipation of higher fuel prices after a recent hike in prices of commercial LPG cylinder. However, on May 15, petrol and diesel prices were increased up by over ₹3 per litre, with traders fearing further hike in the coming months.  

“What previously cost around ₹300 to ₹350 per shipment has now crossed ₹700 for transport from Bengaluru to Mumbai and major textile hubs. Transporters have increased rates saying they are facing supply issues and charges could rise further now,” trade activist Sajjan Raj Mehta said.  

Kiran Madhav, a trader, said traders regularly source grey fabric, yarn and other raw textile inputs from Surat and Ahmedabad, while processed materials are sent back to Mumbai for further distribution, adding that the rise in transport charges is expected to directly affect the movement of raw materials across the textile supply chain. 

However, the pressure is not limited to transport costs alone. The recent ₹993 hike in the price of a 19-kg commercial LPG cylinder has already raised textile ‘processing’ costs by up to 10%, as commercial LPG is heavily used in dyeing, washing, drying and finishing process.  

“During dyeing, fabric has to be heated at specific temperatures for colours to set properly. Large quantities of hot water are then needed to wash off chemicals and excess dye. Drying machines and stenters also require heat to remove moisture and prepare the fabric for further processing. Even the last steps to improve texture, softness and shrink resistance depend on steam generated through LPG-fired boilers,” said Mahesh Kumar, a tie-dyeing unit operator in Nagarathpet. 

He added that, for small textile processing units, commercial LPG remains the primary fuel source as shifting to electricity is expensive, piped natural gas infrastructure is not available, and alternatives such as diesel or coal are either costlier in the long run or face restrictions. However, since dyeing units operate on fixed-rate supply contracts, they are unable to immediately pass the added burden, squeezing margins, Mr. Kumar added.  

These unit owners and traders said that, if this trend continues, it could lead to increase in garment prices and weaken competitiveness against manufacturing hubs such as Bangladesh and Vietnam.