Cotton is dear to us, and dearer too

Category: General

Country: India

Bangalore Mirror Bureau / Updated: Jun 26, 2022, 06:00 IST By Ishika Mittal 

Are your go-to garments cotton ones? If so, we bring disappointing news.

The price of cotton garments has increased by a range of 20 to 40 per cent. Traders say that the garments may become more expensive in the future as many of the manufacturers have stopped production for want of raw materials.

With cotton becoming less pocket friendly, the demand for it has also fallen tremendously. The recent trends in the cotton market have affected textile merchants all over the country.

Speaking to Bangalore Mirror, Sajjan Raj Mehta (Ex-President of Karnataka Hosiery and Garment Association), said, “Almost every reputable garment company has raised the MRP of cotton fabrics and garments by 20 to 40 per cent. Once the prices go up, it is very rare for them to come down. While the increase in prices has affected the textile industry everywhere, Tiruppur in Tamil Nadu is among the worst hit areas”.

The current situation in the market can be attributed to multiple factors. Firstly, crop failure is a major cause of the price fluctuation. The tension between India and China, the latter being one of the largest importers of cotton from India, has affected their trade relations. Moreover, the Russia-Ukraine war has caused a downfall in many markets, including in the textile market. Finally, the increase in fuel prices has made transportation more expensive.

Praveen Bafna, a Bengaluru-based garment manufacturer, said, “Price is a very big factor when it comes to selling products in the Indian market. An increase in price reduces the ticket size of the garments. A customer who would earlier buy two cotton shirts is now able to afford only one as the ticket size has reduced. Naturally, the demand and consumption have come down”. 

Manoj Mehta, a saree dealer from the city, said, “The demand for sarees has already come down in the past few years. The increase in cotton prices has further reduced this demand. The margins have also fallen as a result of this.”

Poly cotton, which is a combination of cotton and synthetic polyester, has seen a hike in demand as this blended fabric is cheaper than pure cotton.

“Almost 50 per cent of the people in the textile business have shifted to poly cotton,” said Bafna.

A textile merchant based in Bengaluru believes that despite being cheaper, poly cotton or PC, as it is popularly known, is not the same as pure cotton.

“The demand for cotton textiles has definitely fallen down. However, those who are used to wearing cotton garments are forced to buy it despite the high price. It is difficult for them to adjust to PC garments. Additionally, many religious practices and traditions demand the use of cotton fabrics and garments,” he said.

Many traders have expressed their disapproval of the government’s plan to raise the GST rates on textiles from 5 per cent to 12 per cent.

“We have already suffered huge losses in the past two years due to the pandemic. That is why KHAGA had written to the Prime Minister, requesting the government to reconsider the hike,” said Sajjan Raj Mehta.

The government has currently deferred its decision to hike the GST rates on textiles.-

Courtesy: https://bangaloremirror.indiatimes.com/bangalore/others/cotton-is-dear-to-us-and-dearer-too/articleshow/92463011.cms