India’s Textile Exports Turn Costlier On Higher Input Prices

India, world’s fifth largest textile supplier, has turned textile and apparel shipments costlier as demand spiked and input prices rose. Many exporters say that prices are up by 10-25% on various categories. The U.S. has driven utilization of attire and home materials as the world’s biggest economy recovers from the pandemic. 

Labour migration, logistics costs and also shortages of containers and higher freight costs have pushed up prices,” said Kailash Lalpuria, ED and CEO at Indo Count Industries Ltd. Lalpuria who is the CEO and ED of Indo Count, that to global chains including Bed Bath & Beyond, Walmart and Coles, said that “while cotton prices have receded from highs, they are still higher than last year”. 

A year before the pandemic, India exported textiles and apparel worth $36.4 billion, with a 4% share in the global trade, according to the 2021 annual report of the sector. Exporters, after facing competition from Bangladesh and Vietnam, have increased their prices. Although the pandemic completely disrupted the supply chain and demand of textile industry. 

According to Rahul Mehta, chief mentor at the Cotton Manufacturers Association of India, since cotton prices have risen globally, other exporters are likely to increase their prices. Manufacturing costs include 30 – 40% contribution of fabric. 

Mehta also mentioned that last year’s stock-pile is being disposed by manufacturers right now. Many manufacturers have not renegotiated their contracts but new contracts made have a higher pricing of textile producing materials.