Middle East Crisis Triggers Footwear Price Hike in Kerala

Footwear manufacturers in Kerala have announced a minimum 10% price increase from November 1, 2026, as rising raw material prices, shipping disruptions and changes in tax concessions put mounting pressure on production costs.

The decision was announced at a joint press conference in Kozhikode by the Footwear Manufacturers Association of Kerala (FOOMA) and the Confederation of Indian Footwear Industry (CIFI). Manufacturers said they had absorbed higher costs for several months but could no longer sustain the additional burden without revising prices.

Middle East Disruptions Push Up Input Costs

Industry representatives reported that the prices of key raw materials had risen by 40 to 60%, placing significant pressure on footwear production. Geopolitical tensions in the Middle East and disruptions to shipping through the Strait of Hormuz have affected the supply and cost of petroleum derived materials.

 Rising sea freight charges have added to the challenge, while the withdrawal of earlier tax concessions on essential raw materials has further increased manufacturers' expenses. These combined pressures have made it increasingly difficult for manufacturers, particularly smaller businesses, to absorb higher input costs while maintaining existing prices.

Manufacturers Seek Tax Relief

FOOMA and CIFI have urged the Government of India to restore or maintain tax exemptions on basic raw materials until supply chains stabilize and prices return to more manageable levels. The associations have also called for policy safeguards to protect micro, small and medium enterprises (MSMEs), alongside import duty relief on essential manufacturing inputs, machinery and components.

Industry representatives warned that continued cost escalation could threaten the viability of smaller production units and put thousands of workers' livelihoods at risk. The associations have appealed to trade partners, retailers and consumers to support domestic manufacturers during the difficult period.

The proposed price revision highlights the vulnerability of footwear manufacturing to geopolitical tensions, petroleum based material costs and international logistics disruptions. For manufacturers operating on tight margins, the ability to manage these pressures will be critical to maintaining production and employment in the months ahead.