new delhi, May 11 -- India's sports goods and equipment manufacturing industry, largely concentrated in Punjab's Jalandhar and Uttar Pradesh's Meerut, is facing mounting cost pressures as the US-Iran war pushes up prices of petrochemical-based raw materials. Manufacturers, suppliers, and experts say prices of key raw materials, including polyester used in sports apparel, plastics and composites used in lightweight rackets, helmets, and hockey sticks, and rubber used in shoes, balls, and other inflatables, have risen sharply. The price of HDPE (high-density polyethylene), a polymer, has increased to as high as Rs.160 per kilogramme now from Rs.96-100 per kg before the war, said Ravinder Dhir, chairman of the Khel Udyog Sangh Punjab, a group representing sports goods manufacturers in the region. The price of rubber has risen to Rs.235 per kg from Rs.180 per kg, and of zinc to Rs.310 per kg from Rs.225 per kg, added Dhir, who also runs his own sports equipment supply business. As a consequence, manufacturers have seen margins come under pressure during the April-June season, when domestic demand dominates order books. While some cricket equipment manufacturers have remained largely insulated, others said they are keeping inventory levels low and that order books are drying up. "Amid rising petroleum product prices, manufacturers are producing strictly according to demand and keeping inventory levels low. Retailers, too, are placing orders only as required instead of maintaining large stocks," said Sanjay Kohli, proprietor of BAS (Beat All Sports), a prominent Jalandhar-based cricket bat and accessories maker. Manufacturers, particularly small and medium enterprises clustered in hubs such as Jalandhar and Meerut, are struggling to absorb rising costs. Many units operate on thin margins and are now being forced to either cut production or pass on the price increase to consumers. "The April-June period sees the highest demand from domestic buyers, but this year, increasing input costs have hit the supply. The demand is there, but manufacturers across the board are finding it difficult to supply it," said Dhir. The prices of some commodities, according to manufacturers, such as low-density polyethylene, polypropylene, polypropylene bags (boris), and printing ink, had risen as much as 50% initially after the war. While they have since fallen, they remain about 30-33% above pre-war levels. Experts estimate that petrochemical prices will stay higher for about a year. "Due to supply-chain disruptions, the blockade of the Hormuz strait, and the time taken to repair damage in several crucial petrochemical manufacturing units in West Asia will mean that it will take about a year for raw material prices to come down close to pre-war levels," said Prashant Vashisht, senior vice-president and co-group head at credit rating agency Icra Ltd. Retailers, meanwhile, report a gradual price increase in sports equipment and apparel, which could dampen demand, particularly among amateur buyers and institutions with fixed budgets....