Home / Knowledge / News / Apparel/Garments / Rising cotton prices squeezing clothing retailers
Rising cotton prices squeezing clothing retailers
May '10
Consumers across the world can expect prices of their favourite apparel and fashion brands to increase, mainly due to the flare-up in raw cotton prices, which have surged by 35-40 percent in the last few months.

Apparel retailers have the option of either having their margins squeezed or passing on the costs to the consumers. The retailers are also bothered by the increase in production costs in China and other countries, which adds to the overall cost of a final product.

The Indian government added fuel to the already raging prices of cotton, when it banned new cotton export registrations and also imposed an export duty on April 19. This had an immediate impact on global prices which shot up by seven percent in the next few days.

The economic recovery in developed countries has led to resurgence in demand for textiles and clothing from exporting countries like China, Vietnam, India and Bangladesh and this in turn is fuelling the prices of cotton to all time highs.

In the current year, China which is the biggest producer, importer and consumer of cotton across the globe has reported a drop in cotton output. The skewed supply-demand scenario is also mainly contributing to the rise of cotton prices.

However, the National Development and Reform Commission (NDRC) in China expects global cotton output to increase on a large scale in the next cotton season beginning from September, which will have an impact on cotton prices.

Clothing retailers would be hoping that there is a bounty crop next year, which could reduce the pricing pressures, after all consumers sentiments still have not revived in the European Union, mainly due to the sovereign debt crisis affecting countries like Greece.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Textiles | On 27th Oct 2016

Fischer Konzept installs sixth Zünd digital cutter

Fischer Konzept, German developers of individual packaging solutions...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search