War Shockwaves Reach Surat: Textile Mills Announce 15% Jobwork Hike Amid Coal Price Surge

Surat | Gujarat — The escalating Iran-Israel-US conflict has begun to sting India’s textile heartland. Thousands of kilometres away from the war zone, Surat’s massive man-made fibre (MMF) industry is feeling the heat as coal prices soar and freight charges spike, forcing textile dyeing and printing mills to announce a 15% hike in jobwork charges after the Holi-Dhuleti festival.

With over 400 to 450 dyeing and printing mills operating across Surat and south Gujarat, the impact is expected to ripple across the entire textile value chain — from sarees and dress materials to finished garments.

Jitu Vakharia, President of the South Gujarat Textile Processing Association (SGTPA), confirmed that the decision was inevitable. “The impact of the ongoing war between Iran and Israel-US has started showing its ugly signs in Surat, known as the Manchester of Gujarat,” he said.

According to Vakharia, imported coal prices have jumped by nearly 25% in just a few days. “Coal importers have increased prices by ₹800 to ₹1,200 per tonne in the last two days alone. At the same time, freight charges have gone up by $8 per tonne. We fear further increases if the war continues,” he added.

Each textile processing mill in Surat consumes approximately 40 to 50 tonnes of coal per day for dyeing and printing operations. With energy forming a significant component of operational costs, the sudden spike has left mill owners with limited options.

“The war may continue for the next couple of weeks or even longer. If coal and freight rates rise further, survival will become difficult without revising jobwork charges,” Vakharia said. He indicated that the revised rates are likely to come into effect next week following a formal meeting of SGTPA members after Dhuleti.

Industry sources reveal that most of Surat’s coal is imported from Indonesia. Although Indonesia is not directly involved in the conflict, traders are reportedly hiking prices amid fears of global supply disruptions. Insiders allege that only three to four major coal importers operate in Surat and may have formed a cartel, leading to what some mill owners describe as “artificial price escalation.”

The proposed 15% increase in jobwork charges per metre will directly push up the prices of sarees, dress materials, and other MMF-based fabrics produced in Surat — which supplies textile products nationwide.

Traders warn that retailers and consumers could soon feel the pinch. “Whenever processing costs rise, the final product price inevitably increases. The burden ultimately falls on buyers,” a textile trader said.