Retail garments to cost more
As the summers are about to knock on the doors, the garment retailers are gearing up to fight against the rising raw material prices and an impeding 10% excise duty hike suggested in the union budget 2011-12. HT reports.business Updated: Mar 10, 2011 22:01 IST
As the summers are about to knock on the doors, the garment retailers are gearing up to fight against the rising raw material prices and an impeding 10% excise duty hike suggested in the union budget 2011-12.
Battling with the rising cotton prices, most garment retailers have already begun taking action even as they collectively protest to make the government reconsider the proposed excise hike. Pantaloon, Reliance Trends and Arvind Brands have already raised prices.
"We have hiked the prices on the new stock that has come in the stores that will be available from March." said Kishore Biyani, group chief executive, Pantaloon on the sidelines of a press event.
"The rising cotton prices have squeeze margins due to higher production costs and the new the prices of the newer stocks have gone up by around 5-8% in order to improve margins," said a company executive on condition of anonymity.
Experts suggest that with the continuing trends and the possibility of the excise hike coming into play consumers' apparel budget might go up by 30%.
Meanwhile amidst rising dissent against the government raising the budget proposal of a 10% hike in excise duty, around 1.75 lakh readymade garment manufacturers and workers decided to shut units for two days on March 14-15.
"Fresh orders have already been put on hold. The additional burden of the excise duty would put further pressures on the industry," said Viren Shah, president, Federation of Retail Traders Welfare Association.