Clothing prices have risen in Gujarat's textile industry due to increased costs.
By yash chouhan 2026-05-04 12:40:19
Rising Cotton Yarn Prices and Processing Costs Drive Up Clothing Prices in Gujarat
The pressure of rising costs on Gujarat's textile industry has become clearly evident. Driven by strong demand for cotton yarn from China and Bangladesh, prices have surged to a record high of ₹300 per kilogram—a level not seen in nearly four years. This impact has reverberated across the entire textile value chain, leading to an increase in clothing prices and a shortage of supply in the market.
According to industry experts, clothing prices have risen by ₹10 to ₹25 per meter over the past month and a half. The primary reasons behind this are not limited to the rising cost of yarn alone; an increase in processing charges has also played a significant role. A surge in fuel and chemical prices has made textile processing more expensive, while the closure of several powerloom units has adversely affected production output.
Traders report that this cost escalation has now reached the retail level, and consumers are consequently facing higher prices for clothing. However, manufacturers believe that the impact on the domestic market may remain limited, as the majority of the stock for the current season has already reached the market. Furthermore, there remains scope to renegotiate prices for the upcoming season. It is estimated that retail prices could witness an increase of 5% to 8%.
Conversely, the export sector is feared to face a negative impact, as it is difficult to pass on these increased costs to clients due to pre-existing contracts. The industry has also expressed concern regarding the high prices and limited availability of raw cotton, urging the Central Government to waive the 11% import duty currently in place.
Rising logistics costs, shipping delays, and the pressure of global competition have further exacerbated the situation. If conditions do not improve, the repercussions on production, exports, and employment could be widespread.
