television prices, SmartphonesRefrigerators and air-conditioners are expected to increase by 5-6% by next month and another round of prices is expected in January-February due to increase in prices by 10-12%. input cost,
Apparel exporters are re-negotiating rates with big brands to pass on higher costs, while prices of agricultural commodities like basmati rice were higher amid crop losses in India due to inclement weather affecting production and supplies. It has just increased.
Freight costs have cooled by 5-15%, depending on the destination, from a peak of $10,000-12,000 in August for carrying containers to or from India.
While it is still higher than $3,000-4,000 at the start of the year, exporters expect a reduction in prices and improved container availability, which will further boost India’s exports, which grew 43% to $35.65 billion in October. Done.
Exporters were finding it difficult to re-negotiate prices earlier this year when freight rates were rising, as buyers, a possible third wave of the pandemic hit India and suppliers to meet their commitments in that event. Worried about capacity, unwilling to pay more.
“Now, when the spread of COVID is somewhat under control and vaccination has started across the world, foreign apparel buyers including big brands like Zara, Mango and others have taken into account a portion of freight cost while setting prices. Lalit Thukral, Chairman, said Noida Apparel Export Cluster,
However, what is plaguing the apparel industry is the rising yarn prices. “It has gone up by over 60% in the last one year. We have to increase the prices of our products, but we are not sure whether the buyers will accept it or not,” he said.
Poorna Senivasan, president of Gokaldas Exports, a major apparel manufacturer and exporter, said, “The container stack has reduced and it is available in about a week as compared to earlier.”
Consumer electronics companies, which are among the largest importers of components, said shipping and air freight rates from China and Hong Kong decreased by about 10-15% from the peak in August. Container rates are now varying between $6,000 and $6,500 from China, compared to $7,000 a month ago. Air freight from Hong Kong has decreased from HK$44-45 to HK$36-37 per kg.
“Rates are down marginally, but are still higher than in the June quarter, when it was around $3,500 per container. We understand that rates will remain elevated and therefore input cost pressures persist, leading to growth There is very little room left for no-prices,” said Kamal Nandi, business head, Godrej Appliances.