Jalgaon: Raw Material Crisis Cuts Industrial Output By 50% Amid Iran-US Tensions

Jalgaon: The city is known not only as the "City of Gold" but also as the "City of Pipes." Today, the conflict between Iran and the United States has begun to deal a severe blow to Jalgaon's industrial sector. Jalgaon is recognised globally for its mat-making industry; however, this very industry has borne the brunt of the war's impact. Due to a 50 percent surge in the cost of raw materials required for production, over 700 factories located in the local MIDC estate have slashed their output by half.

During the month of Ramadan, there was a significant demand for mats from the Gulf nations. Mat manufacturers produced goods on a large scale; however, exports were stalled due to the Iran-US conflict. Subsequently, a sharp rise in the prices of raw materials essential for mat production has caused output to drop to half its previous levels. Some manufacturers have even opted to suspend production entirely. The district is home to numerous PVC pipe manufacturing companies, all of which require PVC powder to produce pipes.

As this powder has become unavailable, production at even large-scale companies has declined by 50 per cent. Furthermore, with over 150 dal mills operating in the district, which require plastic bags for packaging pulses, the disruption in the supply of these bags has brought the distribution of finished goods to a standstill. Although factories have halted or curtailed production, they have refrained from laying off workers. However, industry observers warn that if this situation persists, these factories will inevitably face severe financial distress.