India’s textile sector is facing a crisis due to a severe shortage of natural gas and rising costs, exacerbated by geopolitical tensions. The situation has escalated recently, with GAIL (India) Limited struggling to secure gas supplies.
Currently, India’s natural gas consumption stands at approximately 189 million MMSCMD, with over half of it being imported. The ongoing geopolitical tensions are impacting gas supply to key textile centers like Surat and Ferozepur.
The government has issued a Natural Gas Control Order to prioritize essential sectors, but this hasn’t alleviated the uncertainty faced by industrial buyers. They continue to grapple with fluctuating prices and supply issues.
Key facts:
- GAIL is paying premium prices of $17-$20 MMBtu for urgent cargoes, compared to usual spot prices of $12-$15 MMBtu.
- The government’s aim for 80% allocation stability for industrial consumers limits production capacity.
- The current conflict has severely disrupted global fuel trade routes, affecting India’s industrial consumers.
This situation indicates that the high prices are placing a significant burden on energy-intensive sectors like textiles. As one observer noted, “This high price indicates a considerable burden for energy-dependent industries like the textile sector.” But how will manufacturers cope?
Officials have not confirmed if there will be any immediate relief measures. The textile industry is vital for India’s economy, employing millions and contributing significantly to exports. Without stable gas supplies, its future appears uncertain.
