Garment prices are likely to appreciate by as much as 40 percent around Navratri and Diwali this year, a top official of Gujarat Garment Manufacturers Association (GGMA) said on the sidelines of the three-day 18th GGMA National Garment Fair, which concluded on July 25.
The 10 percent excise duty recently levied by the Government, approximately 15 rise in labour costs, and an increase in the cost of raw materials, are all expected to be passed on to the customers during the festive season.
He was, however, optimistic that the global slowdown would not affect the garment producers in Gujarat.
“Clothing is one of the basic needs of the people and there is a 20 percent or more of growth in its demand every year. Garment manufacturers have in hand orders till November 2011. So, the demand is robust while the supply is bit restricted,” he said.
He said it was earlier possible for garment producers and retailers to offer attractive schemes to consumers, because of adequate supply as well as administrative and operational costs being under control.
But, it would be difficult this festive season for the retailers to come up with such schemes to attract consumers. Even if such schemes are brought out, the end-prices would be very high, the GGMA official added.
Fibre2fashion News Desk - India
marketing@alchempro.com
