Garment prices to go up

Apparel buyers will feel the pinch this festive season. They have to pay 15 per cent more for their

favourite brands — be it lingerie, shirts, or bottoms. The reason: rising cotton prices, which have gone up by 72 per cent in the last one year. The bad news doesn’t end there. With the Indian government allowing cotton exports, after a five-month gap, domestic prices are set to spiral, as a result cotton prices have touched record heights and will most likely pinch consumers during the marriage season as well.

A surge in demand for clothing in the developing world coupled with the devastating floods in Pakistan and a heavy monsoon season in China and India have made cotton a highly sought-after commodity. Rising cotton and yarn prices have severely affected entrepreneurs across the apparel manufacturing chain. They fear that if cotton prices are not controlled, the entire textile industry would crumble resulting in job losses for lakhs of migrant workers.

Between August and September, cotton prices in India have zoomed 36 per cent to Rs 36,500 per candy. Arvind Mills, the country’s largest textile exporter, is looking to raise prices soon while Mafatlal Industries has already increased domestic prices by 10 per cent and plans to hike it for the overseas markets.