Effect of rising cotton prices, now branded clothes will be expensive
Disturbed by the continuous increase in cotton prices, now fashion retailers have planned to increase the prices of branded garments. Growing fashion retailers such as Celio, Arvind Fashion and Shoppersstop say that due to the increase in cotton prices, our input costs have increased significantly, resulting in us having to hike prices. Cottonka is used exclusively in branded clothing. 50 percent cotton is used in denim, 30 to 40 percent in t-shirts and 10 to 20 percent in inner wear. It is clear that with the increase in the prices of cotton, their cost increases directly.
Due to the increase in the prices of clothes, once again the burden on the pocket of the common man is going to increase. Cotton prices have gone up by 45 percent as compared to last year. In fact, due to the strong demand in the international market, there has been a lot of jump in the prices of cotton. This has become a growing problem for fashion retailers. According to Crisil Research, one of the reasons for the increase in prices is that cotton futures on Intercontinental Exchange ICE have crossed the level of $ 1.5 per pound. Prices in India stood at Rs 8,220 per quintal as compared to Rs 5,728 in the previous year, showing a growth of 45 per cent on a year-on-year basis, the agency said. Apart from this, the important reason for the jump in cotton prices in India is the decrease in cotton crop and increase in consumption.
Let's know what the major fashion brands are saying on increasing the prices
Cotton prices have increased by 45 percent as compared to last year. We are making every effort to reduce the prices, but we cannot bear the full burden of the increased prices, so there is no other option but to increase the prices.
Kulin Lalbhai, Arvind Fashion Director
We had raised prices by 10 to 12 per cent in October 2021, when there was no reduction in demand anywhere from our premium to mid-segment. Seeing the rising prices of cotton, we may have to take the step of increasing the price again.
--Venu Nair, CEO, Shoppers Stop
If cotton prices continue to remain volatile as today, we will increase prices by 5 to 6 per cent, which will be in line with inflation. Celio may hike prices before launching its winter collection.
--Satyen Momaya, CEO, Cellio
Note- The government is now imposing a temporary ban on the export of cotton from India to stop the rise in prices.
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