Textile mills to pass on part of cost hike on consumers
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.
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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