Surat Textile Mills Hit by 40% Chemical Price Surge

Surat | Gujarat — Surat’s textile industry, already reeling under a 50% US import tariff, has been hit with another blow — a 40% spike in sodium hydrosulfite prices despite government-imposed anti-dumping duties on imports from China and South Korea. Industry leaders allege that big suppliers have formed a cartel, hoarding stock and creating an artificial shortage to push prices up.

The sodium hydrosulfite chemical, essential for bleaching and finishing in about 400 mills in Surat textile cluster, has jumped from ₹85/kg to ₹115–₹135/kg in just four months. This sharp rise comes even as the government has imposed anti-dumping duties of ₹40.32/kg on Chinese imports and ₹29.32/kg on South Korean imports, valid until 2026, to protect domestic production.

“What’s happening is daylight profiteering,” said Vinod Agarwal, President of Sachin Textile Process Industries Welfare Association. “When a new player like Kutch Chemical has already started production, there is no logical reason for a shortage. This is a manufactured crisis created to extract higher profits from struggling mills.”

Mitul Mehta, a prominent textile processor, added: “This is not about real demand and supply. This is about a few big suppliers manipulating the market, holding stock, and dictating prices. The anti-dumping duty, intended to protect local manufacturing, is being misused to create a monopoly-like situation.”

The association’s written representation to the Union Finance Ministry, Ministry of Textiles, and the Directorate General of Trade Remedies (DGTR) claims that certain manufacturers have restricted supply, keeping prices artificially high. They argue that without competitive imports, mills are left with no bargaining power.

In the memorandum, the association stated:

“The anti-dumping duty on sodium hydrosulfite from China and South Korea has inadvertently created conditions for unfair trade practices. Prices have risen nearly 40% in four months, despite no corresponding increase in raw material or logistics costs. Planned shortages are causing severe operational strain on textile processors. Without corrective measures, the sustainability and export competitiveness of the industry will be seriously compromised.”

Industry leaders are now calling for urgent government intervention — either by removing or reducing the anti-dumping duty to allow cheaper imports, or by imposing strict price control measures.

“We are urging mill owners not to panic-buy and stockpile,” Agarwal said. “Buy only what’s necessary. If we stand united and demand fair market practices, suppliers will have to listen.”

With the global textile market already facing turbulence, Surat’s textile cluster fears that unchecked chemical price manipulation could further cripple its competitive edge in exports — a scenario that could ripple through India’s entire textile economy.