Soaring Gold Prices Drive Up Kancheepuram Silk Sari Costs by 50%
As the wedding season kicks off, families in search of the iconic Kancheepuram silk saris are facing an unexpected financial hurdle. The prices of these traditional garments have skyrocketed by 50% over the past eight months, primarily due to a steep rise in gold prices. This surge has led to a significant decline in sales, with prominent retailers like RmKV reporting a 20% drop.
The cost of gold has jumped from Rs 5,356 per gram in October 2023 to Rs 6,900 per gram in May 2024, with silver prices also seeing a substantial increase. As a result, consumers are now gravitating towards saris with reduced gold and silver content or avoiding these precious metals altogether to manage their budgets.
The price hike is not just affecting consumers but also the entire Kancheepuram silk sari industry, valued at Rs 10,000 crore. The traditional handloom sector, which caters to a global Indian diaspora, is experiencing a shift as weavers turn their focus to more affordable options, abandoning the production of high-end saris.
Industry experts highlight that this unprecedented price rise is reshaping consumer behavior and posing significant challenges for weavers and retailers alike. The once thriving market for premium Kancheepuram silk saris is now grappling with decreased demand, underscoring the broader economic impacts of fluctuating gold prices on traditional crafts.
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