Ludhiana Hosiery Makers Squeezed as Raw Material Costs Jump About 40%

By BizTorq News Desk, Surat · 25 October 2026 · 2 min read

Ludhiana's hosiery, knitwear and winterwear makers say raw material costs have risen by about 40% in a few months, driven by costlier crude-linked fibres, dyes and cotton. With buyers resisting higher prices, small units are under the most pressure going into the winter season.

BizTorq Textile News cover: Ludhiana hosiery makers squeezed by rising raw material costs

Ludhiana, which makes about 95% of India's winterwear, is heading into its main selling season under heavy cost pressure. Hosiery, knitwear and garment makers say their raw material bills have gone up by roughly 40% within a few months, according to reports published on 22–23 October 2026, and they cannot pass the full increase on to buyers.

What has become costlier

Polyester inputs: PTA, the main raw material for polyester, has risen from about ₹105–110 a kg to ₹145 a kg, according to Amit Pandey of Vardhman Polytex. Polyester prices are up about 30%. Official wholesale price data shows PTA up 49% and MEG up 35% year on year in September.
Crude oil: India's crude basket averaged about $116 a barrel in September, up from about $90 in August, raising the cost of polyester, nylon and spandex.
Dyes and chemicals: wholesale inflation for chemical products rose to 16.74% in September. Industry sources also point to reduced dye supply from China.
Cotton: domestic Shankar-6 cotton prices have risen about 18%, as demand shifts to India and output dips.
Other costs: yarn, sewing thread, packaging and wages have all gone up.

Small units hit hardest

Ludhiana has about 1.4 lakh MSMEs making hosiery, knitwear and garments. Larger companies with steady cash flow are coping, but small units with annual sales of ₹1–2 crore and margins of 8–10% are in difficulty, and traders say many micro units are close to shutting. Vijay Kumar of Nato International said supply from manufacturers to wholesalers has been cut by nearly half and expects the winter and festive season to stay flat. The industry has also reported a week-long strike over shrinking profitability.

Kapil Joshi, president of the Purana Bazar Hosiery Association, has asked for simpler regulations. At the Centre, the first meeting of the Development Council for Textile Industry on 6 October discussed stable supplies of cotton, man-made fibre, yarn, dyes and chemicals, and support for MSMEs. Punjab's Textile and Apparel Policy 2026 offers electricity duty exemption and SGST reimbursement for eligible units.

The squeeze mirrors what Surat's weavers and Bhiwandi's powerloom units have reported this year, as fibre and yarn costs rise faster than fabric and garment prices.

What it means for Surat traders

Retailers and wholesalers buying winterwear and hosiery from Ludhiana should expect higher rates or lighter qualities this season, and may find smaller suppliers asking for faster payment. Buyers who can commit early or pay promptly are likely to get better terms. For Ludhiana units, cutting slow-moving designs and holding less high-cost stock may protect cash flow until input prices ease.

Questions traders are asking

Why are Ludhiana hosiery costs rising in 2026?

Makers say raw material costs are up about 40%, driven by costlier crude-linked fibres such as polyester, higher dye and chemical prices, dearer cotton, and higher wages and packaging.

Which Ludhiana units are most affected?

Small units with annual sales of ₹1–2 crore and thin margins are under the most pressure. Larger companies with steady cash flow are coping better.

Will winterwear prices rise this season?

Makers say they cannot pass on the full increase because buyers are resisting, so expect some price rise, lighter qualities or thinner margins rather than a full 40% increase.

Sources

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