Middle East conflict cripples Madhya Pradesh industries with soaring costs

The ongoing conflict in the Middle East has sent shockwaves through industries in Madhya Pradesh. Raw material costs have surged, forcing businesses to halt orders, reduce production, and even consider shutdowns. The crisis is particularly severe for manufacturers relying on imported chemicals and polymers.

Polymer prices have jumped by 50% since the conflict escalated, hitting local industries hard. C B Malpani, owner of Shri Parag Polyplast Industry, reported that plastic pipe prices have climbed from around Rs 550 to Rs 800. This sharp increase has led to a noticeable drop in sales.

Transportation costs have also soared, doubling or even tripling in some cases. Gautam Kothari, President of Pithampur Industries, highlighted how this has made exports far more expensive. Many businesses are now struggling to fulfil older orders at previously agreed rates, resulting in heavy financial losses. The situation is equally dire for packaging-dependent industries. Alka Sharma, managing director of Khadyot Naturals, has paused two international orders due to a 25% rise in packaging costs. Meanwhile, Rajiv Agrawal, an industrialist in Mandideep, warned that without a steady supply of LPG and other chemicals, many units could be forced to close. The conflict has disrupted imports from the Middle East, where India sources key materials like polymers and packaging supplies. Chemicals from the region now cost 30% to 50% more, pushing up the price of finished goods. Businesses that once relied on stable supply chains are now facing uncertainty, with no immediate relief in sight.

Factories in Bhopal, Pithampur, and Mandideep are bearing the brunt of the crisis. With raw material and transport costs spiralling, some have already scaled back operations, while others risk closure if conditions worsen. The prolonged conflict continues to strain India's industrial sector, leaving little room for recovery in the near term.