Surging gold prices push cost of Kancheepuram silk saris up by 50%
Surging gold prices push cost of Kancheepuram silk saris up by 50%
It’s the wedding season when families flock to textile showrooms to purchase Kancheepuram silk saris, but this year, the prices are burning a hole in their pockets. The cost of these internationally renowned silk saris has surged by up to 50% in the past eight months due to skyrocketing gold prices.
The price hike has led price-conscious consumers to shift their preferences towards saris with less gold and silver content or those without these valuable metals altogether. Leading retail textile chains are witnessing a 20% dip in sales during the current wedding season due to the price rise. “Several customers come with a specific budget and prefer Kancheepuram silk saris with less gold and silver content, while some reduce the number of saris to suit their budget,” said a retailer.
Gold and Silver Price Surge
For the first time, the cost of silk saris has increased by 35-40% in a short span of time, primarily due to an unprecedented rise in gold prices. The price of 22-carat gold rose from Rs 5,356 per gram on October 1, 2023, to Rs 6,900 per gram on May 21, 2024. Similarly, silver rates surged from Rs 75.5 per gram to Rs 101 per gram during the same period. This surge has severely impacted the Rs 10,000 crore silk sari industry in Kancheepuram, where handloom saris are woven for the global Indian diaspora.
Impact on Weavers and Retailers
A member of the Kancheepuram Silk Sari Manufacturers Association stated that the price increase of saris between October last year and this May is 40-50%. “The cost of Kancheepuram silk saris is determined primarily by gold and silver rates as the two metals are essential to make the ‘zari’ that is part of traditional silk sari,” he explained.
Customers are now opting for handloom Kancheepuram silk saris with ‘zari’ that does not include the mix of gold and silver as it is cheaper. This shift is having a significant impact on businesses and weavers.
Kancheepuram silk saris, woven with silk, gold, and silver, are traditionally worn on special occasions and festivities. These GI-tagged products are known for their intricate patterns on sari borders and have evolved to cater to modern demands, including designs with images of wedding couples.
Decline in Production of Premium Saris
A member of the Handloom Weavers Association mentioned that the production of premium saris has come to a standstill. “For instance, the cost of a silk sari, which was priced at Rs 70,000 in October last year, has escalated to Rs 1.2 lakh at present. Since there are only a few takers for such premium category saris after it became expensive, weavers have turned their attention towards the affordable sari segment,” he added.
The substantial increase in gold and silver prices has not only escalated the cost of Kancheepuram silk saris but also forced both weavers and consumers to adapt to the changing market dynamics.
