As wedding season approaches, families are flocking to textile showrooms to purchase Kancheepuram silk saris. However, this year, the internationally renowned silk saris are significantly more expensive due to skyrocketing gold prices.
In the past eight months, the cost of Kancheepuram silk saris has surged by up to 50%, prompting price-conscious consumers to opt for saris with less gold and silver content or those without these valuable metals altogether.
According to reports, many leading retail textile chain brands, that deal in Kancheepuram silk saris, are witnessing a sizeable dip in the sale during the current weeding season due to high prices.
“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,” K Sivakumar, managing director of RmKV, told TOI.
Woven with silk, gold, and silver, Kancheepuram silk saris are cherished for special occasions and festivities. Known for their intricate patterns on sari borders, these GI-tagged products have evolved to meet modern demands, including designs featuring images of wedding couples.
Reports indicate that the price of a silk sari, which was Rs 70,000 in October last year, has now escalated to Rs 1.2 lakh. With fewer buyers for these premium saris due to the price hike, weavers are increasingly focusing on more affordable sari options.
The price of 22 carat gold rose from Rs 5,356 per gram as on Oct 1, 2023 to Rs 6,900 per gram as on May 21, 2024.Similarly, silver rates also surged from Rs 75.5 per gram to Rs 101 per gram during the same period, according to TOI.
However, Gold and silver prices retreated from record highs in the national capital on Tuesday, with the yellow metal plunging by Rs 550 per 10 grams due to profit-taking and weak global trends.
According to HDFC Securities, gold prices were impacted by hawkish comments from one of the US Fed Reserve members, who suggested that interest rates will need to continue at current levels for a longer period to bring inflation back to target.
Gold prices declined by Rs 550 to Rs 74,650 per 10 grams. It had settled at Rs 75,200 per 10 grams in the previous session. Silver prices also declined Rs 1,600 to Rs 94,500 per kg. In the previous session, it had settled at Rs 96,100 per kg.
V K Dhamodaran of Kancheepuram Silk Sari Manufacturers Association told TOI that the price increase of the saris between Oct last year and this May is 40-50 per cent.
“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 told TOI.
“Customers have started buying the handloom Kancheepuram silk sari with ‘zari’ that does not have the mix of gold and silver as it is cheaper. This is having a huge impact on our business and weavers,” he added.
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Soaring gold prices drive up cost of Kancheepuram silk saris by 50 per cent
