Like households, commercial establishments the LPG shortage has hit hard the textile and apparel labour intensive industry – Already two lakh employees have been rendered jobless and if the present situation continues, more employment losses cannot be avoided. Two textile hubs in Tamil Nadu – Coimbatore and Tirupur – find the going rather tough after the US tariff was hiked to 50 percent in August last year.
The grim picture, industry leaders warn, does not end with the job losses. The tariff hike has also impacted annual exports to the US and further job losses are feared. Worse the latest trade data released by the Union Commerce Ministry shows that the combined exports of textile and apparel in February 2026 declined by minus 4.26 percent compared to February 2026 declined by minus 4.26 percent compared to February 2025. During April February 2026, textiles exports declined by minus 2.17 percent while apparel exports grew by a more 0.57 percent year – on – year. Overall exports of textiles and apparel declined marginally during the period under review. During February 2026, textiles exports declined by minus 0.36 percent and garment exports by minus 8.60 percent.
The data further shows that during April – February 2026 exports of cotton/ yarn / fabrics /made-ups and handloom items fell by minus 3.24 percent yearon-year. The table is indicative of the rather difficult times ahead with the raging West Asia war with no end in sight.
The annual exports to the US from Coimbatore and Tirupur was worth dollar 1.7 bn. “Now they have been reduced by a billion. And if the 50 percent tariff on Indian products continues, it will be nil one year down the line. “Says S.Dhinakaran, Vice President, Apparel Export Operations and Business Development, Quantum Knits, a unit of KPR mills Ltd.,
There are according to him other standard tariffs in addition to the 50 percent tariff and the same is reflected in the delivered duty paid. This translates into a higher cost for a product. The delivered duty paid to China and Bangladesh is comparatively lower by 30 per cent” Dhinakaran further says.
He wants the government to strengthen the EU and the UK markets as an alternative. African Middle east and other Asian markets are also available but come with limitation. The Africa markets will be a bit challenging owing to their un-reliability. Asian markets are small.
To relieve the shortage, AEPC has urged the government to include the apparel export industry within the 20 percent LPG cylinder allocation during the current shortage. AEPC chairman R.Sakthivel has highlighted the urgent need to ensure an interrupted supply of LPG to the industry, in a representation to state ministers R.Sakkarapani and TRB Raja.
LPG is a critical fuel used extensively in garment manufacturing, especially in processing segments such as dyeing, washing, compacting and finishing units that form the backbone of the apparel export eco system.
The Coimbatore District Small Industry Association (CODISSIA) says the district has about 2.5 lakh MSMES, most of which depend on LPG for operations using 19 kg, 33 kg, 4.75 kg and 425 kg commercial cylinders. Petroleum companies have stopped supply of these cylinders, forcing an operational crisis, says CODISSIA President M.Karthikeyan. The Association urged the centre to allocate LPG on a rationed basis to sustain operations and prevent job losses. Migrant workers who had gone home for Holi have been asked not return to Coimbatore, obviating the need for further job losses. If the situation continues, Karthikeyan warned a potential impact on production and employment in the coming weeks. MSMIs are also grappling with rising input costs.
Another serious problem confronting apparel exporters is the war-related surcharges and longer shipment routes due to the on-going West-Asia war. It has pushed up costs adding Rs.12 and Rs.55 for every single garment exported, according AEPC estimates.
A potential decline of apparel export orders to West Asia may occur over the next few months. Due to the war, apparel consumption may fall and brand confidence will be impacted. This will lead to a decline in exports. AEPC says “The increased costs come as shopping companies have imposed an emergency war surcharge on cargo moving to the Gulf countries. AEPC said the surcharge increased container costs by about Rs.1200 per 20 feet container. This has the effort a raising cost of individual garments depending on the product category.
Further, in a 20 feet container, the surcharge can add to about Rs.12 per shirt, Rs.18 per trouser Rs.37 per ladies dress, Rs.43 per 2 – piece. Shirt and Rs.55 for a winter coat. AEPC estimates shows, shipping disturbance also added to the pressure as shipping companies suspended vessel crossings through the strait of HORMOZ and Red Sea, facing cargo to be rerouted or rescheduled.
It is known that West Africa remains an important market for India’s ready-made garments, accounting for nearly 11.8 percent of the country’s apparel exports. In the previous financial year 2024-2025. India exported garments worth about dollar 1.9 bn to West Asian countries according to data from the Directorate – General of Commercial Intelligence and Statistics (DGCI and S).
Exporters say that many shipments are now being diverted around the Cape of Good Hope, adding nearly 6500 km to the journey and delays delivery by 10 to 15 days, raising fuel and insurance costs.
