Natural Gas Crisis Hits India’s Textile Sector

India’s textile sector is facing a crisis due to a severe shortage of natural gas and rising costs, exacerbated by geopolitical tensions. On May 3, 2026, the situation has intensified as GAIL (India) Limited struggles to meet demand.

The textile and handicraft sectors are under significant pressure. Natural gas and LPG shortages have led to increased production costs for manufacturers. GAIL has turned to the spot market for gas, paying premium prices of $17-$20 MMBtu compared to usual prices of $12-$15 MMBtu.

Natural gas consumption in India stands at approximately 189 million MMSCMD, with over half coming from imports. The government issued a Natural Gas Control Order to prioritize key sectors, but industrial buyers still face supply uncertainty.

The ongoing geopolitical tensions are impacting gas supply to India’s textile centers. Conflict has disrupted global fuel trade routes, affecting industrial consumers across the nation.

Key facts:

• Natural gas consumption in India is about 189 million MMSCMD.
• The government aims for 80% allocation stability for industrial consumers.
• Over 60% of natural gas imports pass through the Hormuz Strait.

Officials have not confirmed the timeline for resolution. The high prices and limited availability suggest challenges ahead for the industry. Experts warn that this situation may lead to further strain on production capabilities.

Statements from industry leaders reflect concern over the impact on manufacturers. They emphasize that the high prices represent a significant burden on energy-dependent sectors like textiles. There is a call for diversification of India’s energy resources to mitigate future risks.