As demand has increased and input prices have risen, textile and garment exports from India, the world’s fifth-largest supplier, have become more expensive.
According to exporters, prices have increased by 10% to 25% in several categories. As the world’s greatest economy recovers from the epidemic, the United States has boosted demand for clothing and household textiles. In addition, the price of benchmark Shankar 6 cotton increased from Rs 33,850 per candy in June of last year to Rs 50,300 each candy in 2021. Other costs have risen as well.
“Prices have risen as a result of labour migration, logistical expenses, container constraints, and rising freight costs,” said Kailash Lalpuria, executive director and chief executive officer of Indo Count Industries Ltd., a supplier to global retailers such as Bed Bath & Beyond, Walmart, and Coles. Cotton prices have fallen from their highs, but they are still higher than last year, he added.
According to the sector’s annual report for 2021, India shipped textiles and clothing worth $36.4 billion a year before the pandemic, accounting for 4% of world commerce. However, as the country confronts competition from Bangladesh and Vietnam, exporters are raising prices. Covid-19 also wreaked havoc with supply networks and demand.
Fabric accounts for 30-40% of the cost of making a garment. According to Rahul Mehta, chief mentor at the Cotton Manufacturers Association of India, as cotton has become more expensive worldwide, other exporting nations are expected to raise their prices as well.
He noted that while many firms are still selling goods from last year, they are not yet renegotiating contracts. New contracts, on the other hand, are more expensive.