Garment manufacturers in Gujarat have predicted a rise of 10 per cent in price of garments after the Central government raised the Minimum Support Price (MSP) on cotton. The government raised MSP on medium-staple and long-staple fiber cotton by 28 per cent and 26 per cent, respectively. The MSP of cotton (medium staple) was raised to Rs 5,150 per quintal from Rs 4020 per quintal and that of cotton (long staple) to Rs 5,450 per quintal from Rs 4,320 per quintal.
Manufacturing units under GGMA mostly produce cotton garments for men. According to GGMA members, even larger cotton processing units who have stocked up low price cotton will tend to increase prices, which in turn will be passed on to the customers at the end of the value chain.
The selling rate of cotton shirts manufactured in Ahmedabad currently ranges between Rs 150-550 for a single piece in the wholesale market. Similarly, the prices of cotton pants produced by the garment manufacturers are about Rs 350-650, while that of denim is between Rs 450-900.
