In a recent development, US textile importers have requested Indian exporters to absorb additional costs arising from global supply chain disruptions and higher shipping rates.
According to industry executives, American buyers are under pressure to manage tight margins and are passing that pressure down the supply chain. Executives from major Indian textile firms say negotiations have become tougher, with buyers asking suppliers to avoid price hikes despite rising input costs in India. Shipping fees, raw material prices, and labor costs have all gone up in recent months, but importers are resisting any changes in existing contracts.
“Buyers are insisting that we maintain old rates even though our production costs have increased,” said an executive at a leading Indian textile company, requesting anonymity. “It’s a challenging situation, but we are trying to find a balance to keep long-term relationships strong.”
Industry experts warn that if cost pressures continue without fair adjustments, smaller manufacturers might face financial strain. Meanwhile, exporters are looking for ways to optimize operations and negotiate flexible terms to manage the ongoing situation. The discussions come at a time when India is strengthening its role as a global textile hub, especially as companies diversify supply chains beyond China.