Rising dollar rates hit dyeing industry
The increasing dollar rates have hit the dyeing industry, which is heavily dependent on imports. As the dollar jumped from Rs 47 to Rs 57, the input costs of dyeing have also shot up considerably.
“From January till now, our input cost has observed a 38% increase, which is mainly due to the rise in dollar rates. We have to import all our dies and chemicals. Therefore, we have no other option but to bear the dollar hike effects,” said Shamak Jindal, proprietor, Jindal Chemicals.
But despite the major hike in the input cost, the industry is not in a position to increase its rates. Ashok Makkad, presi d e n t , P u n j a b D ye r s Association, said, “The increased input cost has made it really hard for us to operate. Besides the increase in dollar rates, the excise duty on dyes has also increased by 2.36%, burdening the industry further.
"However, we are not in a position to increase the rates of dyeing because the market is already facing a slump.”
Moreover, the electricity shortage is also adding to the input cost of the industry, making things worse.
“The labour cost has already increased from Rs 4,000 per month to Rs 6,000 per month. On top of that, the power cuts have been forcing us to operate on generators, which is further adding to our costs, Makkad said.
“We request the government to take steps to control the falling price of the rupee, so that our industry can stabilise,” he added.