Several textile processors in India have increased prices as cotton rates surged to Rs 88,000 per candy and dyes and intermediate prices increased by 30 per cent. Textile processing units in Ahmedabad increased processing charges by Rs 2 per metre from April 1. This is likely to push up apparel prices by at least 7 per cent, says Naresh Sharma, Former Vice President, Ahmedabad Textiles Processors’ Association.

A few processing houses have increased charges due to rising coal, color, and chemicals costs. Closing of 500 textile processing units in Danilimda and Suez is shifting orders to Piplai and Narol units, leading to an increase in prices by these units. Many textile traders and garment manufacturers are terming this move unethical. The move will hit demand for clothes, opines Vijay Purohit, President, Gujarat Garment Manufacturers’ Association.

The association has released a circular stating that textile processing houses will have to finish orders as per earlier price commitments, adds Gaurang Bhagat, President. Traders have been asked to clearly mention grey quantity, processing rates, dyeing, design and delivery rate, while signing contracts with processing units.