Processors irked as dyes get dearer

The dyes and chemicals manufacturers' decision to up the prices of their products has left the textile processing industry fuming.

Some of the Surat-based dyes and chemicals manufacturers have hiked their prices by around 20-25 per cent on Thursday, sighting rise in raw material prices. Those who have increased the prices are: Colour Tex, Nova Dye Chem and Spectrum Chemicals.

"There has been a substantial increase in prices of raw materials in the last few weeks. The prices of anilene oil, benzene, ethylene oxide etc., have shot up by 50-125 per cent. Prices of other materials have also gone up. We have been forced to hike the prices of dyes and chemicals, only because of the increase in prices of raw materials. The price hike came into effect from Thursday, and we have intimated this to all our clients," A Y Digwadekar, zonal manager, Colour Tex, told Business Standard.

Textile processing units, the main consumers of dyes and chemicals, are not happy by the latest round price increase.

"The prices of majority of the dyes and chemicals have increased between 35 per cent and 40 per cent in the last couple of months. Dyes and chemicals account for one-third of our total production costs, so this steep hike in prices will certainly hit us hard," said Jitu Wakharia, vice-president, the South Gujarat Processors Association.

Incidentally, only last Thursday, the processors had decided to hike the job charges by 50 paise to Rs 1 per metre, depending on the quality.

Processors had reasoned that the hike was necessary as prices of dyes and chemicals had increased by around 20 per cent. Despite the substantial hike in prices of dyes and chemicals, the processors have decided not to effect any hike in the job charges for the moment.

"Majority of the processors in Surat have hiked the job charges from Monday. Though the latest hike in prices of dyes and chemicals will certainly hurt us, we have decided not to hike the job charges any further in the near future. We will, instead, concentrate on increasing efficiency, and take other measures to reduce cost. Our profits will decline a great deal, but we have decided not to pass this price hike to customers," Wakharia added.