Ris­ing dol­lar rates hit dye­ing in­dus­try

HT Ludhiana Live - - Front Page - HT Live Correspondent [email protected]­dus­tan­times.com LUD­HI­ANA:

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.

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