Dyeing factories in Delhi-NCR region are facing a shortage of dyes. Imports of raw material from China have dwindled. This means sourcing by top global fashion brands, including Zara, Gap, H&M, Old Navy and Marks & Spencer, from these factories may get hit.

The price of dyes has increased nearly 30 per cent over the last 15 days and it is not sustainable for factories to carry on operations at the same rates. Many dyeing factories are considering scaling down operations, especially during a time when orders are pouring in from international markets for the spring ’19 season. The price of yarn has also been increasing over the last few weeks.

India is a major hub for several global brands. For instance, H&M and Ikea have been sourcing from the country for over a few decades. Textiles constitute around 70 per cent of Ikea's exports from India. Similarly, British retailer Marks & Spencer counts the country among its top five global sourcing hubs. The local dyeing industry, which includes around 150 factories in the Delhi-NCR region, has recently been rocked by the ban on pet coke and furnace oil, important ingredients in the dyeing process. A few plants, unable to sustain operations, have shut shop.