CHENNAI: The ongoing war involving Iran, United States and Israel has severely affected the textile industry in Karur, with exports worth nearly Rs 10,000 crore facing delays due to disruption in the supply of key raw materials, said a Maalaimalar report.
Exporters say the import of polyester fibre, a crucial raw material used in the textile sector, has been completely disrupted following the escalation of tensions in the Gulf region. The situation has also affected shipping operations, leaving several consignments stranded and unable to reach international markets.
According to industry representatives, the war has disrupted supply chains across the Gulf region, leading to a halt in the import of polyester fibre used in textile production. With shipping routes affected and vessels unable to operate normally, exporters are struggling to send finished products abroad.
Stephen Babu, an office-bearer of the Karur Textile Manufacturer and Exporters Association and owner of Homeline Textile, said Karur is a major hub for exporting table linen, curtains and bedspreads to markets in the United States and several Europe countries.
The industry, which generates around Rs 10,000 crore in annual business, relies heavily on polyester fibre balls that are blended with cotton yarn. The petroleum-based raw material is largely imported from Gulf countries by Reliance Industries.
Industry sources said more than 3,200 ships carrying polyester fibre and other cargo have been stranded mid-sea due to the ongoing conflict and closure of several manufacturing facilities in the Gulf region.
As a result, the price of polyester fibre has surged by nearly 40 per cent, rising from Rs 112 per kg before the conflict. Exporters fear that fulfilling existing contracts at previously agreed prices could lead to losses running into several crore rupees.
Stephen Babu urged Narendra Modi to intervene diplomatically and engage with global leaders to help ease the conflict and stabilise supply chains.
He also called for measures to control the rising prices of textile raw materials, warning that the crisis could impact exporters as well as lakhs of workers dependent on the textile industry in Karur.