INDORE: Prices of clothes and fabrics have jumped by 10 per cent in about a week following a steep rise in yarn prices, making readymade garment costlier in the festive season.
Rates of clothes in different segments have increased by about 5-10 per cent due to rising yarn prices and increased logistic cost, claimed manufacturers, traders and retailers.
Maharaja Tukojirao Cloth Market Merchants Association president Hansraj Jain said, “There has been a jump of around 10 per cent in rates of clothes. Apart from raw material prices, skyrocketing fuel prices has made logistics expensive and still there is no certainty on market rates because of the volatile nature of raw materials and fuel prices.”
Indore is a major trading centre for clothes and a manufacturing hub for readymade garments.
Cloth traders said, high cost of fuel has made transportation of goods expensive, squeezing margins and making end products costlier.
Indore Retail Garments Association president Akshay Jain said, “Rates of readymade garments have jumped but looking at the market sentiment, it is unlikely to have any impact on festive business. Everything - Dying, colouring, transportation — has become costlier.”
Fabrics and clothes called from outstation markets have seen a sharp increase due to high cost and transportation charges. Market is expected to see a rebound this festive season but high costs may keep a lid on purchases.The main markets for Indore made garments are southern India, Rajasthan, Gujarat and Maharashtra. Material for shirting and suiting come from markets of Mumbai and Bhilwara, while sarees and dress material are mostly from Gujarat, said traders.
There are around 1200 readymade garment manufacturers in Indore and the Readymade Complex in Pardeshipura, is a hub for garment manufacturers housing around 125 units.
Despite a jump in prices, manufacturers and traders anticipate a better season this year due to ease in pandemic induced restrictions and pace of vaccination in urban and rural belts.
