Exporters expect reduction in prices and improvement in container availability, which will further boost India’s exports.
Overseas apparel buyers including Zara, Mango and other big brands have agreed to take into account the freight cost while fixing the prices
Freight rates have come down from high levels and the availability of containers has improved i.e. the country no longer has the same container problem as before. According to the news of Economic Times, some sources of Indian industry have given this information. According to sources, there has been a significant improvement in container availability for India’s apparel and agricultural goods importers and consumer electronics, but prices are expected to increase in the coming months due to increase in cost price.
The prices of televisions, smartphones, refrigerators and air-conditioners are likely to increase by 5-6% by next month. The prices are expected to increase even more in January-February due to increase in cost price by 10-12%. Apparel exporters are renegotiating rates with big brands to pass on the higher cost. In India, production and supply have been affected due to bad weather, due to which the prices of agricultural commodities like basmati rice have already increased amid crop losses.
Rising yarn prices are bothering the garment industry
Sources said exporters expect reduction in prices and improved container availability, which will further boost India’s exports, which rose 43% to $35.65 billion in October. Lalit Thukral, President, Noida Apparel Export Cluster said, “Now that the spread of Covid is under control to some extent and vaccination has started across the world, foreign apparel buyers including Zara, Mango and other big brands have decided to buy goods while setting prices. It is agreed to take into account the transportation cost.
However, rising yarn prices are troubling the apparel industry. It has increased by more than 60% in the last one year, he said. We have to increase the prices of our products, but we are not sure whether the buyers will accept it or not.
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