Ahmedabad: Industrial units in the city’s chemical and textile clusters are facing rising input costs after gas supply to industrial consumers was curtailed amid the ongoing Israel–Iran conflict, leading to lower production and higher prices across the supply chain, industry representatives said.

Chemical manufacturers said they are receiving only about 40% of their required gas, forcing many units to operate at reduced capacity. This has pushed prices of basic chemicals and intermediates up by 30–40% over the past two weeks, while key inputs such as coal, sulphuric acid and phthalic anhydride have also become costlier, a TOI report said.

Higher chemical prices have increased the cost of colour chemicals used by textile processors, prompting several units to raise job-work charges for new orders from Monday, sources said.

Textile units, particularly in the Narol cluster, are also under pressure due to rising fuel costs, with coal prices increasing by nearly 30% in the past 15 days. Indonesian coal (4,100 GAR) has crossed ₹9,000 per tonne excluding GST, while colour chemical prices have risen by 25–30%, further squeezing margins.

Quoting JK Vyas, CEO of Narol Textile Infrastructure and Enviro Management (NTIEM), reports said demand remains steady but rising input costs due to the conflict-linked supply disruption have affected operations, and units are unable to pass on the full cost increase.

Ahmedabad, one of India’s key cotton textile processing hubs, may see the impact of the cost surge across the entire value chain. DeshGujarat