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Dye, organic chemical exports witness sharp decline due to weak global demand

Updated: May 30, 2023 02:33:43pm
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Dye, organic chemical exports witness sharp decline due to weak global demand

Ahmedabad, May 30 (KNN) The Dye and organic chemicals exports from India have declined significantly in the last financial year, according to a report in the TOI.

Dye exports have decreased by 22.67 per cent in volume terms, while organic chemicals exports have reduced by around 33 per cent. Only dye intermediates exports have seen a strong increase of 46 per cent, while other categories such as inorganic, organic, and agro chemicals exports have decreased.

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In the financial year 2021-22, all categories, except inorganic chemicals, had registered an increase in exports compared to the previous year.

Bhupendra Patel, Chairman (Gujarat region) of Chemexcil, said, “The past year has been challenging for the dyes segment. The textile industry has faced low demand worldwide due to weak economic conditions in the US and Europe, directly affecting demand for dyes. Several companies have temporarily halted production, and factories have been operating at 50-60 per cent capacity. The significant decrease of approximately 23 per cent in dyes exports is likely unprecedented."

Gujarat is a major hub for dyes and dye intermediate chemicals, accounting for around 70 per cent of the country's total production.

He further explained that while dye intermediates and inorganic chemicals have shown an increase in value, it is mainly due to price rises and the stronger dollar against the Indian Rupee.

Manish Kiri, MD of Kiri Industries Ltd, said, "The previous financial year was difficult for the industry, with significantly fewer orders and a challenging domestic market for dyes and organic chemicals.”

“The revival of demand will depend on the geopolitical situation. Some intermediate products have experienced a revival in recent months, and Gujarat-based plants have resumed the production of intermediates. The fiscal year 2024 will be better,” he added.  (KNN Bureau)

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