Mumbai: Century Textiles & Industries Ltd has been battling margin pressure as prices of cotton, a key input, hit record high while buyers were resisting product price hikes, a senior company official told Reuters.
“About 10-15% (increase in) prices we have been able to pass but not much,” R K Dalmia, senior president at Century Textiles, said over the telephone.
Over past two months, cotton prices surged over 36% to an unprecedented Rs38,500 per candy (of 356 kg each), due to thin supply and a rally in overseas markets, data with the Cotton Association of India showed.
“We will be continuously pushing the prices, but the question is how much the market and consumer can absorb? There is resistance, lot of resistance by buyers,” he added.
Dalmia expects soaring costs to affect the textile industry and feared the prices could remain high next year too.
“Cotton prices will not come down in near future. Exports will be impacted. Already in garment exports, growth is not there. This year, it will be lower,” he said.