The textile and handicraft sectors are under significant pressure. Natural gas consumption in India stands at approximately 189 million MMSCMD, with over half sourced from imports. GAIL has become heavily reliant on the spot market for gas, leading to increased production costs.

The government issued a Natural Gas Control Order to prioritize key sectors. However, industrial buyers still face supply uncertainty and high prices. GAIL is currently paying premium prices ranging from $17-$20 MMBtu for urgent cargoes, compared to usual spot prices of $12-$15 MMBtu.

The ongoing geopolitical tensions have severely disrupted global fuel trade routes. This disruption affects India’s textile centers, particularly in regions like Surat and Ferozepur.

The government aims for 80% allocation stability for industrial consumers, but this limits production capacity across the sector. The LPG shortage compounds these challenges, further straining the industry.

Officials have noted that the current conflict is impacting gas supply lines crucial for manufacturing. As a result, manufacturers are struggling to maintain operations amid skyrocketing costs.

Industry experts warn that these issues may lead to long-term repercussions for the textile sector. They emphasize the need for India to diversify its energy resources aggressively.

In light of these developments, stakeholders in the textile industry are calling for immediate government action to stabilize supply and pricing.

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