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Input cost pushes dyeing units to raise prices
02
Jun '10
Recently, the dyeing associations of Ludhiana had met to discuss the unusual rise in the prices of raw materials, electricity charges by Punjab State Power Corporation Limited (PSPCL) and fuels in dyeing processes.

Senior officials of Ludhiana Dyeing Associations (cotton and processing divisions), Bhadurke Road Dyers Association and other leading industrialists from the city marked their presence for the meet.

There has been a hike of 35-40 percent in fuel charges, 7.5 percent in the rates of power, while the labour charges have increased by about 15-20 percent.

This increase is reflected in the prices of raw materials. Also, there would be a further price rise of fabrics by Rs 5-7 per kg, Rs 3-5 per kg in polyester fabrics and for printing of fabrics and Rs 2-3 per kg in stentering and compaction (according to fabrics), said Vijay Mehtani, General Secretary of Ludhiana Dyeing Associations.

While referring to the directive, issued by the Punjab and Haryana High Court, Mehtani informed that, the dyeing units have been ordered by the Court to establish a common waste management plant and therefore, they have decided to increase the fabric prices to adjust the cost of establishing this plant.

At the meet, they even touched the issue of delayed payments from customers, which has become a concern for the industrialists. This is because a majority of the customers do not adhere to the original time limit of 30-45 days, which is granted to clear the bills from the date of purchase. They instead take around 90-150 days to pay the amount, said Mehtani.

Fibre2Fashion News Desk - India

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