Rajkot/Anand/Surat: The ongoing war in West Asia has started affecting multiple industrial sectors across Gujarat, with gas supply disruptions, rising crude oil and coal prices, higher freight charges, and costly raw materials putting pressure on industries in Rajkot, Charotar and Surat. Industrialists have warned that if the situation continues, production costs may rise sharply and finished goods could become significantly more expensive.

Gas-based industries in the Shapar-Veraval industrial estate near Rajkot are facing a major crisis after the gas supply company reduced supply by 50 percent with immediate effect and imposed a three-fold price hike on units consuming more than their average quota. The estate has a large number of foundries, investment-casting units and heat-treatment plants that depend heavily on gas as fuel.

Office bearers of the Shapar-Veraval Industrial Association said the supply cut is linked to reduced gas imports due to the conflict in West Asia. The supplier has fixed consumption limits based on the previous month’s usage, and any excess consumption is being charged at three times the normal rate, increasing the financial burden on industries. The association is scheduled to submit a representation to state Petrochemical Minister Rushikesh Patel seeking immediate intervention.

Shipping disruption pushes freight costs higher

Industrialists said the conflict has also disrupted shipping routes in the region. Tensions near the Strait of Hormuz have forced cargo vessels to take longer routes, resulting in a sharp rise in container freight charges. Export-oriented and import-dependent industries in Gujarat are facing higher logistics costs due to the situation.

Chemical imports affected, production cost rises

Foundry and engineering industries that rely on imported chemicals and minerals for melting and manufacturing processes are also under pressure. With imports disrupted, traders holding stock have increased prices, raising the overall cost of production for industrial units.

Charotar region industries face 50% gas cut

In the Charotar region covering Anand and Kheda districts, more than 200 gas-based industries have been affected after daily gas supply was reduced by 50 percent.

Industries engaged in ceramics, tiles, engineering, electrical goods, paints, chemicals and foundry operations depend on continuous gas-based production processes. Industrialists said the supply cut has increased production costs and created uncertainty in meeting orders on time, raising the risk of penalties and financial losses.

Manufacturers in Vitthal Udyognagar said sectors such as food processing, dairy, chemicals, pharmaceuticals, ceramics and tiles rely on pipeline gas, and any disruption makes production significantly more expensive.

Textile industry in Surat hit by crude oil, coal price surge

The impact of global tensions is also being felt in Surat’s textile industry, where rising crude oil and coal prices have pushed up input costs, raising fears of a steep increase in the prices of sarees, dress materials and garments.

Industry representatives said crude oil prices recently surged from around $75 per barrel to nearly $120, before dropping to about $92, creating volatility in petroleum-based raw materials such as polyester and nylon yarn. Yarn prices have increased by ₹10 to ₹30 per kg in several categories, forcing many small weavers to cut production or observe weekly shutdowns to control losses.

Textile units are purchasing yarn cautiously as demand for fabric remains weak in domestic as well as export markets. Traders said key markets such as Dubai are slow, limiting new orders, while the cost of yarn manufacturing has increased due to higher crude prices and global uncertainty.

Industry leaders estimate that prices of man-made fibre (MMF) products could rise by nearly 20 percent if the current trend continues. Surat, which produces around 6 crore metres of greige fabric per day, is already seeing the impact of higher input costs and slow demand.

The pressure has increased further as coal prices have risen by nearly 35 percent in the last two weeks, forcing textile processing units to increase processing charges to offset higher fuel costs.

Fear of shutdowns if conflict continues

Industrial associations across Gujarat warned that if the war continues for a long period, gas supply uncertainty, high fuel prices and rising raw material costs could make operations difficult for many units. They said prolonged disruption may lead to production cuts, job losses and a sharp rise in prices of industrial and consumer goods. DeshGujarat