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Rising indigo prices turn denim makers blue
25
Jul '12
Indigo dye, which gives the blue shade to your blue denim jeans, has become costlier in the last one month. This means that despite prices of cotton being more or less stable, consumers may have to fork out more for their favourite pair of jeans.

India imports nearly 99 percent of its requirements of Indigo and the weakening rupee has meant cost of importing indigo has risen nearly 30 percent in the last few weeks. The denim fabrics producers in turn have hiked their prices.

“The only way we can counter the price rise of Indigo is by increasing denim fabric prices to a certain extent”, says Mr Utsav Pandwar, Financial Controller at Ahmedabad-based Aarvee Denims.

India imports around 7,000 tons of Indigo dye annually amounting to more than Rs 20 billion. Dyeing about 100,000 meters of denim fabric requires around one ton of Indigo dye, say experts.

Speaking about market conditions, Mr Pandwar added, “The Indian denim fabric market is doing well and the demand is increasing as per our expectations. Moreover, the overseas markets are also reasonably performing fairly”. 

Fibre2fashion News Desk - India


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