As wedding season approaches, families are flocking to textile showrooms to purchase the renowned Kancheepuram silk saris. However, the joy of these purchases is dampened by a significant price increase driven by the surge in gold prices.
In the past eight months, the cost of Kancheepuram silk saris has skyrocketed by up to 50%, prompting budget-conscious consumers to seek saris with less gold and silver content or none at all.
RmKV, a leading retail textile chain specializing in Kancheepuram silk saris, has seen a 20% dip in sales this wedding season due to the steep price rise. “Many customers come with a fixed budget and prefer saris with less gold and silver content or buy fewer saris to stay within their budget,” said K Sivakumar, managing director of RmKV.
Customers Opt for Saris with Minimal Gold-Silver Mix
“This is the first time we’re seeing such a sharp increase in silk sari prices, rising by 35-40% in a short period due to unprecedented gold price hikes,” Sivakumar noted.
The price of 22-carat gold surged from Rs 5,356 per gram in October 2023 to Rs 6,900 per gram in May 2024. Similarly, silver rates increased from Rs 75.5 per gram to Rs 101 per gram in the same timeframe. This price hike has severely impacted the Rs 10,000 crore silk sari industry in Kancheepuram, known for its handloom products favored by the global Indian diaspora.
V K Dhamodaran of the Kancheepuram Silk Sari Manufacturers Association reported that sari prices have increased by 40-50% between October last year and this May. “The cost of Kancheepuram silk saris is mainly influenced by gold and silver rates, as these metals are essential for making ‘zari,’ a traditional element of the saris,” he explained.
To cope with rising costs, customers are increasingly purchasing saris with ‘zari’ that does not contain the gold-silver mix, which is cheaper. “This shift is significantly impacting our business and the livelihoods of weavers,” Dhamodaran added.
Kancheepuram silk saris, known for their intricate patterns and rich textures, are traditionally woven with silk, gold, and silver and are often worn for special occasions and festivities. The GI-tagged product has adapted to modern demands, with contemporary designs featuring images of wedding couples woven into the fabric.
According to J Kamalanathan of the K S Parthasarathy Handloom Weavers Association, the production of premium saris has stalled. “For example, a silk sari that cost Rs 70,000 last October now costs Rs 1.2 lakh. With fewer buyers for such premium saris due to the price increase, weavers are shifting focus to more affordable options,” he said.
#KancheepuramSilk #GoldPrices #WeddingSeason #TextileIndustry #HandloomWeavers #SariFashion #TraditionalCraftsmanship
