Expect garment prices to skyrocket soon as the fluctuating value of Indian currency is virtually burning a hole in the pockets of those in the knitwear industry.
The recent fall in value of rupee against the Greenback has led to a steep increase in costs of imported raw material, including inks, chemicals and dyes, required during printing and dyeing processes.
In view of the prevailing situation, the printing and dyeing industries have decided to increase their processing charges to cope up with the increased costs.
According to president of Dyers Association of Tirupur (DAT) S Nagarajan, the association has decided to increase the processing charges between 15 per cent and 25 per cent, depending on the shades and colours, from Saturday.
“The cost of imported dyes and chemicals have increased in the range of 50 to 100 per cent following the rupee devaluation. We have no other option than increasing the processing charges,” he said.
The recent fall in the number suppliers of dyes and chemicals has also added to crisis, Nagarajan said. “Of the four industries in China, which were supplying dyes and chemicals, three were shut down after complaints of pollution. We were earlier importing around 1,000 tonnes of dyes per month, but now get only 300 tonnes. The local industries are taking advantage of the situation and are increasing their prices,” he noted.
With the raw materials’ prices going up and the local supplier cashing in on the opportunity, the association had no other option than to go for a hike, he said.
Meanwhile, Tirupur Export Knit Printers Association (TEKPA), following in the lines of DAT, has decided to increase printing charges to compensate for the additional cost of raw materials. The announcement would be made after the annual general body meeting of the association on September 18.
“We import almost all the inks and binders, but the rupee devaluation has led to an increase in prices. We cannot bear the high cost without increasing the rates,” TEKPA president Srikanth said.
Sources said that both DAT and TEKPA were seeking the support of garment manufacturers to accept the increased processing charges. Sources added that with the increase in prices of raw materials and processing charges, consumers would have to pay more to buy garments.