The decline in the chemical business of Surat due to the slowdown in the export of chemicals and the local business

The ongoing war between Russia and Ukraine for the past six months has had a major impact on the chemical industry. Due to the sanctions imposed on Russia, energy crisis has arisen in some countries of the world including Europe. So some industries are on closure. Which has a direct impact on the chemical industry. The export of dyes and chemicals abroad has come down by 25 percent. On the other hand, due to slowdown in all sectors including textiles, pharmacy, agriculture in India, there has also been a decrease in chemical trade in the domestic market. Thus, there is a problem in the chemical industry. The time has come to shut down the units to save even bigger units from damage.

Small and medium units on the verge of closure

According to information received from chemical industry sources, chemical industry has spread on a large scale across the state including Surat and South Gujarat. Chemical units in Surat and South Gujarat manufacture dyes and chemicals used in various industries. This chemical is sold in many industries including textile, pharmacy, agriculture. Apart from this, some industrialists are exported from here to countries including Germany, France, Spain, Thailand, Indonesia, America, Brazil. The condition of the chemical industry is bad for the last six months. Big industrialists say that at present they are continuously running in losses, while small and medium units are feared to be closed.

Its effect is visible at the global level

Industrialists say that the effect of the global recession is being seen on the chemical industry. The situation has worsened since the war between Russia and Ukraine. Russia supplies natural gas to many countries of the world. After the start of the war, some countries of the world condemned Russia and decided not to do any economic transactions from there and banned imports. Since then, problems have started for the industries. Due to non-availability of natural gas in some industrial units in countries including America, Europe, production has been stopped. Due to which the units there have also stopped importing chemicals, which has endangered the existence of the local chemical industry. Due to the recession, the production of chemical units has been cut by 50 percent. Some large units are also being forced to close down. Due to lack of demand, the whole business is in disarray and businessmen are also facing financial crisis. Traders say that there is no end to the problem in the near future.

25 percent drop in exports

Due to the war between Russia and Ukraine, some countries in the world have banned goods including Russian natural gas, causing an industrial crisis in Surat and reducing the dyes and chemicals exported from the country. Apart from this, due to slowdown in all sectors including textile, pharmacy, agriculture in the domestic market, the chemical industry has faced crisis.