22 November 2021, Mumbai:
Prices of FMCG, apparel products have shot up in India. Prices of agriculture commodities have already gone up amid crop damage due to the inclement weather in India affecting production and supplies. Though freight rates have eased from the peak and container availability has improved for India’s exporters and importers, high input costs could force them to increase prices in the coming months.
Apparel exporters are renegotiating rates with big brands to pass on higher costs to consumers. Exporters were finding it tough to renegotiate prices earlier this year when freight rates were increasing, as buyers, worried about a possible third wave of the pandemic in India and the ability of suppliers to meet their commitments in that event, were unwilling to pay more. Now that the spread of Covid is under control and vaccination has picked up across the globe, overseas apparel buyers like Zara and other big brands have agreed to take into consideration a portion of the freight cost while fixing prices.
However, what is affecting the apparel industry is yarn prices, which have gone up by more than 60 per cent in the last one year. Manufacturers have to increase prices of their products but are not sure whether buyers will accept it. The container pile-up has reduced and it's available in about a week than what it was earlier.
