The Beijing Olympic Games has not spelled good news for more than 60 textile processing units in Bhiwandi with shortage of dyes and chemicals, largely imported from China, fuelling a spike in their input costs.

The industry that depends on Chinese dyes and chemicals has been put into a spot after the Olympic host shut down its local chemical-manufacturing units because of pollution concerns.

In just over three months, prices of dyes and chemicals imported from China has jumped by more than 200%-300%, hurting the only source of livelihood for more than 200,000 workers and weavers of this vital textile city of western India.

If the escalating prices of dyes were not enough, the rising crude oil prices and double-digit inflation has made matters worse. Dyes, chemicals, electricity, water and coals are the major inputs for the textile makers of Bhiwandi.

?The abnormal rise in prices of dyes and chemicals is due to phenomenal rise in crude oil prices,? said Arun Doshi, chairman, direct & indirect taxes sub-committee, Federation of Associations of Maharashtra (FAM)

?Besides, many dyes and intermediate manufacturing units in China are closed since these industries are considered to be some of the most air and water polluting agents due to high-level emission and discharge of carbon and other impurities in air and water,? he added.

He further said that fresh imports of base chemicals are unlikely in the next two months with the Beijing Games continuing till that time.

Notwithstanding the hardship that this Olympics has brought to Bhiwandi, the industry is trying hard to absorb the rising cost of vital inputs like water, coal and electricity.

Apart from dyes and chemicals, prices of coal have also been increasing by 100-200 a tonne every month. In July, coal prices were increased by Rs 200 a tonne, but there has been a Rs 300-per-tonne rise in the prices again in the beginning of the current month, thanks to traders? cartel in this region.

About 60 textiles processing houses situated in Bhiwandi consumes a minimum of 700-800 tonne coal a month to produce steam, which is one of the major inputs of the industry.

Each processing house employs nearly 800-1,000 workers. Bhiwandi is one of the largest textiles fabric producing centers giving employment to nearly two lakh weavers and workers. Traders said hoarding of key input by a section of traders is also hurting their margins.

The industry has requested the government to consider the industry?s demand for allotment of ?A? grade coal at a subsidised rate. Industry sources said coal prices will cross Rs 7,000 per tonne by December and if this trend will continue, it will definitely ring the death knell for the labour intensive and export-oriented industry.