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Textile mills to pass on part of cost hike on consumers

Oct 29, 2021
Textile mills to pass on part of cost hike on consumers

Mumbai, Maharashtra

The cost of textile and fabrics could go up by 10-15% this Diwali due to the manifold rise in production cost, according to textile associations.

According to some traders, the industry has already passed on over 15% cost to the customers. The production and demand in the textile industry are back to the pre-covid levels. However, the high input cost is hurting the margins of the mills.

Jitubhai Vakharia, President, South Gujarat Textile Processors' Association, said that, production cost has gone up nearly four times, and they are witnessing a hike every fortnight. Production cost for a high quality fabric has now soared to Rs 12-18 per meter, while that of a normal fabric is at Rs 7-8 per meter -- twice more than the what it cost earlier.

He added that in the last six months the cost of dyes and chemicals have gone up by 40-50% and above this the transportation and power charge hikes have impacted the industry severely.

Sanjay Jagnani, President, Federation Of Surat Textile Traders Association said that a hike of 12-15% has already been passed on to the customers. The traders are now worried in any revision in GST slab. South Gujarat Textile Processors' Association has planned to make a presentation to Finance Minister Nirmala Sitharaman and Minister of Commerce & Industry Piyush Goyal in the coming week.

On the other hand, the industry is hopeful of higher sales during the festivals like Diwali and Pongal. Vakharia says that the demand is expected to remain high as the wedding season picks up. He shares that the demand this season is 25% higher than that of pre-covid levels. Currently, the production is normal but if the price pressures continue, then it could be impacted.

Source: ETNOWNEWS.COM

Image Source: Google Images

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