Cotton Prices Go Up Forcing Retailer Price Increases

Wednesday 30th of December 2009 05:31:52 PM

Cotton Prices Go Up Forcing Retailer Price Increases

Cotton prices are climbing and that is forcing some major apparel makers in India to raise clothing prices. Everything from suits to href="http://www.polo-shirts.co.uk/Sweatshirts">sweatshirts to fabric will be going up in price. Some of the leading brands indicating they will have to increase prices by 5 to 10 percent include Nahar Group, duke, Malwa Group and others. There will be many global retailers forced to take the same action as cotton prices spiral upward.

The Chairman of Duke Group, Komal Jain, was quoted as saying, “We will be increasing the rates of our summer wear, which is into production now, by 5 to 7 percent as the cotton prices have gone up sharply which has jacked up our input cost.” Duke is well known for its trendy t-shirts.

Cotton yarn prices have gone up as much as 25 percent. Nahar Industrial Enterprises Ltd. confirms what the Duke Group spokesman said. Managing Director Kamal Oswal of Nahar added, “Definitely, rising cotton prices is major cause of worry for garment and fabric makers. That is why we feel the prices of readymade garments may increase by 10-12 percent and fabric prices by 20 percent.”

The Indian retailers are hoping to sell their readymade garments to foreign buyers at the higher prices. This will help the country improve its economic picture in the area of exports also. The retailers do not know yet if this will be possible though and are concerned foreign buyers will balk at the higher prices. Malwa Group supplies denim fabric and denim garments to UK based brands like Marks & Spencer. As the economic recession continues to unwind, there is much uncertainty in the marketplace as to the direction prices will take and how much consumers will be willing to spend in the face of continued high unemployment.