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Denim brands feel heat of cotton prices
May '10
Iconic global denim brands are feeling the heat of the ever increasing prices of raw cotton, which is the main raw material for manufacturing denim fabric.

The brands are caught in a catch -22 situation as the present market situation does not them to increase consumer prices, due to which they have to absorb the prices increases adopted by denim fabric producers.

While on the other hand denim fabric manufacturers have also been bogged down by the flare up in cotton prices which have risen by between 35-40 percent, to touch 15-month high's.

Normally denim fabric prices are contracted at the beginning of the cotton season, with a volatility of 10-15 percent taken in to account. But this time the high volatility has taken everyone by surprise.

Retailers, who are still facing tough times, are solidly resisting any increase in prices by the denim brands, leaving the brands to bear the increase in cost of the denim fabric.

Fibre2fashion News Desk - India

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