US-Iran conflict pushes raw material costs for India sports goods
The U.S.-Iran conflict is hitting India's sports goods industry hard, especially in Jalandhar and Meerut.
Prices for key materials like HDPE and rubber have jumped sharply: HDPE went from around ₹100 to ₹160 per kg, and rubber from ₹180 to ₹235.
Ravinder Dhir of Khel Udyog Sangh Punjab said raw material prices have risen sharply and are putting pressure on manufacturers' margins.
Indian manufacturers cut production, raise prices
To cope, many companies are cutting production and keeping less stock, even as the busy sales season kicks in.
About half of the sports goods made in India are exported, and India produces $183 million worth of sports goods annually.
Manufacturers are raising prices for buyers at home and overseas, which could mean fewer sales, especially in price-sensitive markets like China and Pakistan.