Member units had no other alternative: SIHMA
Tirupur: Hosiery products coming from Tirupur knitwear cluster and meant for domestic consumption has become dearer by 10 per cent.
The increase in prices is applicable for all orders placed from April 1 onwards.
The hosiery manufacturers arrived at the decision after taking stock of the steep rise in prices of raw materials, dyeing charges and power cost over the past few weeks, which in turn, increased the production cost considerably.
The hosiery products like banians, briefs, ladies' undergarments and T-shirts produced from Tirupur cluster had been finding their market in Kerala, Karnataka, Maharashtra, West Bengal and Delhi, among other states.
South India Hosiery Manufacturers Association (SIHMA) president A.C. Eswaran pointed out that the member units had no other alternative but to revise upward the prices of end products when confronted with higher consumption of diesel to run generators following the recent increase in load shedding hours and abnormal rise in cotton yarn prices from April 1.
“The prices of yarn, one of the main raw material in the production chain, increased by Rs. 17-a-kg over a month,” he pointed out.
Besides, cost of packing materials like corrugated cardboard boxes had shot up by 25 per cent recently.
Meanwhile, the knitwear exporters, who too face these same problems in the manufacturing process were yet to revise the costs.
“Probably for them, they will have to opt for lesser profit margins than hike the prices since any increase in the cost of end products at this juncture could erode their buyer base in the price-driven global market,” industrial experts said.