Iran–Israel war hits Ballari jeans industry
Chemical shortage disrupts production
The ongoing Iran–Israel War is beginning to impact not just global markets but also local industries in India, with Ballari’s well-known jeans manufacturing sector facing a severe crisis. Disruption in the supply of essential chemicals from Gulf countries has led to a sharp decline in production, while exports have come to a near standstill.
Industry sources said that key chemicals required for dyeing and finishing denim—such as Hydrogen Peroxide, Sodium Hypochlorite, and Potassium Permanganate—were primarily imported via sea routes from Gulf nations. However, due to disruptions in shipping caused by the conflict, supplies have been halted completely, leaving manufacturers scrambling for alternatives.
The shortage has also triggered a steep rise in prices. Chemicals that were previously available at around ₹40 per kg have now surged beyond ₹150 per kg. Traders are reportedly selling limited local stock at inflated rates, further worsening the situation for small and medium-scale units.
The timing of the crisis has compounded the losses. The demand for Ballari jeans typically peaks during festive seasons like Ramadan and Ugadi, especially in international markets such as Dubai and other Gulf regions. This year, nearly 20 lakh jeans were expected to be exported. However, due to the shortage of dyeing materials, production has dropped by nearly 50%, severely affecting business turnover.
Exporters say orders worth crores of rupees are now uncertain, with many shipments either delayed or cancelled.
“Without proper finishing and colour treatment, we cannot meet international quality standards,” said a local manufacturer.
The industry, which was already grappling with labour shortages, is now facing a compounded crisis. Rising raw material costs and declining output have put immense pressure on factory owners.
If the situation persists, there are fears that several units may shut down, impacting the livelihoods of thousands of workers dependent on the sector.
Experts warn that unless supply chains stabilise soon, the ripple effects of the conflict could deepen further, threatening one of Ballari’s key industrial pillars.
