Gujarat’s dye industry relieved as chemical prices drop

Ahmedabad, July 17 (KNN) Gujarat’s dye industry heaved a sigh of relief as the prices of basic chemicals such as J acid, Tobias acid, Soda-ash, Sulphuric Acid are now more than 30 per cent down from the previous year.

Last year, the dyes and intermediates industry in Gujarat saw a recession due to low demand and high production capacities. The dye exports had fallen by 22 per cent, significantly impacting the manufacturers in Gujarat.

Now, the decrease in the prices of basic chemicals is being seen as a silver lining by the industry, as it has allowed the dying units to narrow their losses which they incurred last year.

However, Federation of Indian Micro and Small & Medium Enterprises (FISME), President Prashant Patel, shared opposing views regarding the matter.

Speaking exclusively with KNN India, Patel said, “The drop in raw material prices has led to a decline in demand as customers are holding back on their purchase in the hope of further decline in the prices.”

This according to Patel is negatively impacting the industry.

Gujarat is the leading dye manufacturing state in the country and accounts for more than 60 per cent of production.  (KNN Bureau)