Ludhiana exporters on edge, brace for rising input costs
Ludhiana, March 2 -- The ongoing conflict in the Middle East has sparked volatility in global commodity markets, particularly crude oil, a development that is expected to directly raise manufacturing and transportation costs, industry honchos in Ludhiana said on Sunday.
The US and Israel launched coordinated, massive missile attacks on Iran that killed supreme leader Ayatollah Ali Khamenei. Iran countered with missile strikes at targets across the Mideast.
"The war has begun to affect industrial activity in Ludhiana, leading to rising input costs and uncertainty in export markets, warned leading trade bodies, representing the cycle, knitwear and engineering sectors.
Gurmeet Kular, president of the Federation of Industrial and Commercial Organisations (FICO), said industries dependent on steel, rubber and petroleum-based products were already feeling the pressure. "When crude and other raw material prices shoot up because of geopolitical tensions, small and medium industries suffer immediately. This is a natural economic outcome of war-linked price swings. Policy support will be required to help businesses absorb the shock," he said.
The knitwear industry, a major export contributor from Ludhiana, has also expressed concern.
Vinod Thapar, chairman of the Knitwear Club, said the Middle East is one of the most important overseas markets for knitwear products manufactured in the city. "A large volume of Ludhiana's garments is supplied to Middle East countries. Because of the tensions, buyers have turned cautious, and trade sentiment has weakened. We were hopeful of improved demand from Europe and had strong supply linkages with Middle East nations, but the present situation has created uncertainty and affected orders and shipment schedules," he said.
Industry leaders warned that shipping delays, insurance costs and fluctuating exchange rates could further strain exporters. Some exporters have reportedly started receiving queries from overseas buyers seeking flexible delivery schedules, while others fear cancellations if the conflict escalates. Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings (CICU), said India exports auto components, garments, medicines and Basmati rice to Middle East countries, while importing crude oil in large quantities from the region.
"Due to the war, crude oil imports are likely to be affected. Petroleum product prices may increase in the coming days. India has faced a similar situation in the past during the Iran-Iraq war, when fuel prices and transport costs rose sharply," he said. Industrialists urged the government to closely monitor the situation and provide relief measures if the crisis continues. They said timely intervention would be necessary to protect labour-intensive sectors and maintain export momentum amid growing global uncertainty....
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