Garment workers sew garments on sewing machines at a garment manufacturing unit in Bengaluru. Traders in Bengaluru source gray cloth, yarn and other raw textile inputs from Surat and Ahmedabad (in Gujarat), while processed materials are sent to Mumbai (in Maharashtra) for further distribution. | Photo credit: ALLEN EGENUSE J
The cost of transporting raw textile materials between Bengaluru and major textile hubs like Mumbai, Surat and Ahmedabad has more than doubled, with rates for a 60kg consignment now exceeding ₹700 compared to ₹300-350 earlier. Adding to this burden is the steep rise in the price of commercial LPG cylinders, which is a major input for textile processing units that depend on it for dyeing and finishing fabrics.
With processing units facing a double whammy, traders say it is likely to increase the cost of fabrics and disrupt the production cycle across the sector.
Even before the fuel hike was announced, transporters had already hiked freight charges in anticipation of higher fuel prices following the recent hike in commercial LPG cylinder prices. However, on May 15, petrol and diesel prices rose by more than ₹3 per litre, with traders fearing further rises in the coming months.
“What used to cost around ₹300-350 per shipment has now crossed ₹700 for transportation from Bengaluru to Mumbai and major textile hubs. Transporters have hiked rates and say they are facing supply problems and the charges could now go up further,” said trade activist Sajjan Raj Mehta.
Trader Kiran Madhav said that gray cloth, yarn and other raw textile inputs are regularly taken from Surat and Ahmedabad by traders, while processed materials are sent back to Mumbai for further distribution, adding that the increase in transport charges is expected to directly affect the movement of raw materials within the textile supply chain.
However, the pressure is not limited to transport costs. The recent ₹993 hike in the price of a 19kg commercial LPG cylinder has already increased the cost of textile ‘processing’ by up to 10% as commercial LPG is heavily used in dyeing, washing, drying and finishing.
“During dyeing, the fabric must be heated to specific temperatures for the colors to set properly. Large amounts of hot water are then needed to wash away the chemicals and excess dye. Drying machines and tensioners also require heat to remove moisture and prepare the fabric for further processing. Even the final steps to improve texture, softness and shrink resistance depend on steam generated by LPG-powered boilers,” said Mahethpetyesh of Namara, a.
He added that for small textile processing units, commercial LPG remains the primary fuel source because switching to electricity is expensive, natural gas distribution infrastructure is not available and alternatives such as diesel or coal are either more expensive in the long run or face constraints. However, since dyeing units operate on fixed-rate supply contracts, they are not able to immediately transfer additional load and squeeze margins, Mr. Kumar added.
These unit owners and traders said that if the trend continues, it could lead to higher garment prices and weaken competitiveness against manufacturing hubs such as Bangladesh and Vietnam.
Published – May 16, 2026 11:07 AM IST
