"Iran-US Conflict Disrupts Karur Textile Cluster; Costs Surge, Exports Stall", 27 March 2026

The ongoing conflict in West Asia has severely impacted textile manufacturers in Karur..

The Karur cluster [is] known for its long-standing reputation in global home textile exports...

...since the onset of the West Asia crisis...exporters have faced growing difficulties in moving containers due to disruptions in global logistics and shipping routes. The impact has been compounded by the sector’s reliance on petroleum-based raw materials, which have seen both supply shortages and sharp price increases.

P. Gopalakrishnan, President of the Karur Textile Manufacturer Exporters Association, stated that overall raw material costs had risen by approximately 40% to 60%...

...processing costs across dyeing, printing, and finishing units had also risen significantly. Shortages of commercial and industrial gases...have exacerbated operational challenges, leading to disruptions across the production cycle. As both input and processing costs continue to escalate, manufacturers and exporters are facing mounting pressure on margins and viability.

...a majority of exporters had been unable to dispatch shipments to clients in key markets...exporters were reluctant to accept fresh orders from overseas buyers due to the inability to ensure production within viable cost parameters...