Garment manufacturers and retailers are expected to raise prices of their products by a minimum of 10 percent, in a bid to offset the flare-up in prices of raw materials.
Cotton prices have spiraled up by 25-30 percent in the past few months, leading to an increase in prices of yarns and fabrics also by the same measure. Other costs like electricity and labour have added no less, to the overall costs.
Speaking to fiber2fashion, Mr Rahul Mehta, President of Clothing Manufacturers Association of India (CMMI) said, “The prices of raw material are going up, especially the prices of cotton, which are constantly increasing. Prices of other raw materials and electricity too have gone higher.”
He concluded by saying, “Due to inflation, labour wages have also shot up, hence garment manufacturers have no choice left but to pass on the price hike to consumers."
However, Arvind Brands is not planning to hike prices in Autumn-Winter 2010 season, but will do so in Spring-Summer 2011, said Mr J Suresh, CEO of Arvind Brands. Giving reasons he said, garment manufacturers are contemplating price hikes, mainly to offset the rise in prices of fabrics and other raw materials.
Fibre2fashion News Desk - India
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