Fabric prices rise on weaker rupee

摘要

Fabric prices are rising, following the sharp increase in raw material costs. And, the rise is already being passed on to consumers by small weavers, as well as large companies. The cost of synthetic fibre has been rising on a sharp fall in the rupee, and this has increased costs of petrochemicals such as purified terephthalic acid and mono ethylene glycol, raw materials used to make fibres. Simultaneously, cotton prices have also increased. While the increase in raw material costs has been a big hurdle for fabric makers, "An improvement in the situation, led by the export demand, has given some comfort to textile players to pass on the increasing costs of raw material. The textile sector, as a whole, is coming back to the growth path," stated Director General, Confederation of Indian Textile Industry. Since April, prices of basic raw materials needed to spin yarns have risen 17-18 per cent, while man-made and cotton yarn prices have risen only 13-15 per cent. However, fabric prices, for synthetic as well as cotton fabric, rose only four-six per cent. Now, yarn-weaving companies are optimistic about passing on costs by increasing prices, as the overall scene seems to be improving, led by an export boom. Rupee fluctuations will be deciding factor for raw material prices in coming months. Managing Editor, Asia Petrochemicals, Platts, stated, "India is very sensitive to fluctuations in the rupees these days.