West Asia Conflict Rattles Ballari Jeans Industry; Traders Worried As Production Falls And Exports Halt

Ballari: The ongoing conflict involving the United States, Israel and Iran and the consequent tensions in West Asia region have begun to affect industries even far away from the battlefield, with Karnataka’s prominent jeans manufacturing hub in Ballari facing a severe downturn. The conflict has led to a sharp fall in production, halting exports, and raising concerns among both industrialists and workers.

Chemical Shortage Disrupts Production

Manufacturers in Ballari depend heavily on chemical supplies sourced from Gulf countries for jeans processing. However, the conflict has disrupted shipping routes, bringing supply chains to a grinding halt. Essential chemicals such as hydrogen peroxide, sodium hypochlorite, and potassium permanganate, which are crucial for fabric treatment and dyeing, are now in short supply. This has significantly slowed down production processes across factories, sources said.

Prices Surge Amid Supply Constraints

The shortage has also triggered a steep rise in chemical prices. Before the conflict, these chemicals were available at around Rs 40 per kilogram. Now, prices have crossed Rs 150 per kilogram in the local market. Existing stocks are being sold at inflated rates, pushing up overall production costs and squeezing profit margins for manufacturers.

Exports Halted, Losses Mount

Ballari's jeans industry typically sees high demand especially from international markets during festive seasons such as Ugadi and Ramzan. This year, manufacturers had planned to export nearly 20 lakh jeans to Gulf destinations, including Dubai. However, with overall production dropping by nearly 50 percent, exports have been severely hit. Industry estimates suggest losses running into several crores of rupees.

Workers Face Uncertainty

The crisis has also deepened concerns among workers. The industry was already facing a labour shortage, and the current situation has further strained employment stability. Thousands of workers employed in the sector are now worried about their livelihoods as production has slowed down and orders remain unfulfilled.

Factories At Risk Of Closure

If the situation persists, several units in Ballari may be forced to shut down either temporarily or permanently. This could have a cascading impact on thousands of families dependent on the industry, traders expressed.

Jeans manufacturer Ibrahim Babu said that the cost of chemicals used in production has risen sharply over the past week. He explained, "The cost per pair of jeans has increased by nearly Rs 100, resulting in significant losses. Orders are usually secured 3-4 months in advance for the festive season, and the sudden rise in production costs has put manufacturers in a difficult position, as they cannot revise prices or cancel orders," adding that each pair now results in a direct loss of about Rs 100.

Another manufacturer, Mohammed Ghouse, pointed out that the conflict has affected petroleum products, which in turn has disrupted the supply of chemicals required for jeans production. He said the cost of producing a single pair of jeans has increased by Rs 100-150.

"Fulfilling existing orders under these conditions would lead to losses. The government should step in with support measures such as subsidies, tax relief, reduction in electricity bills, and monetary assistance for workers to help the industry sail through the crisis," he urged.

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