Ludhiana Textile Sector Weathers LPG Crisis, But Cost Pressures Mount

Ludhiana’s textile and hosiery industry has remained largely insulated from the ongoing LPG shortage that has disrupted manufacturing activity in several parts of the country, thanks to its continued reliance on alternative fuels.

Unlike major textile hubs such as Surat, where a widespread shift to LPG has forced production cuts and temporary shutdowns, Ludhiana’s units have continued operations with minimal disruption. The city’s industry predominantly uses rice husk, wheat husk and pet coke in boilers for dyeing and fabric processing, reducing its exposure to LPG supply constraints.

With around 1,500 units employing an estimated 4-5 lakh workers, Ludhiana’s textile ecosystem has benefited from its traditional dependence on agri-waste fuels. Industry representatives say this diversified energy mix has helped avoid a direct crisis, even as LPG-dependent units elsewhere struggle with shortages.

However, stakeholders caution that the sector is not entirely immune to broader challenges. The ongoing West Asia conflict has indirectly increased cost pressures through higher input prices and logistics expenses. Rising costs of fibres such as polyester, acrylic and cotton, coupled with weak export demand, are weighing on margins.

Industry leaders also point to emerging labour concerns, with some workers affected by rising household fuel costs. In certain cases, companies have had to absorb higher LPG expenses to retain manpower. Additionally, a small segment of units that use LPG for specialised processes like singeing has faced disruptions, though the overall impact remains limited due to low adoption of such processes in the region.

While Ludhiana has avoided the immediate fallout of the LPG crunch, the industry continues to navigate a challenging environment marked by rising input costs, supply chain pressures, and subdued global demand.