As the wedding season approaches, families traditionally flock to textile showrooms to purchase Kancheepuram silk saris. However, this year, buyers are facing sticker shock. The prices of these internationally renowned silk saris have surged by up to 50% in the past eight months, driven by the skyrocketing cost of gold.
Changing Consumer Preferences
The substantial price hike has led many cost-conscious consumers to alter their purchasing habits. Shoppers are increasingly opting for saris with less gold and silver content, or even those without these valuable metals altogether. Leading retail textile chains have reported a 20% dip in sales during this wedding season due to the steep price increase. “Customers often come with a specific budget and now prefer Kancheepuram silk saris with less gold and silver content, while some reduce the number of saris they purchase to stay within their budget,” noted a retailer.
Gold and Silver Price Surge
For the first time, the cost of Kancheepuram silk saris has increased by 35-40% in a short span of time, primarily due to an unprecedented rise in gold prices. On October 1, 2023, the price of 22-carat gold was Rs 5,356 per gram; by May 21, 2024, it had soared to Rs 6,900 per gram. Similarly, silver rates have surged from Rs 75.5 per gram to Rs 101 per gram over 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 highlighted the significant impact of this price increase. “The cost of Kancheepuram silk saris is determined primarily by gold and silver rates, as these metals are essential for making the ‘zari’ used in traditional silk saris,” he explained.
As a result, customers are now opting for handloom Kancheepuram silk saris with ‘zari’ that does not include the mix of gold and silver, as these are cheaper. This shift has had a significant impact on both businesses and weavers.
Decline in Production of Premium Saris
The production of premium saris has come to a near standstill. “For instance, a silk sari that was priced at Rs 70,000 in October last year has now escalated to Rs 1.2 lakh. Since there are only a few takers for such premium category saris after they became expensive, weavers have turned their attention towards the more affordable sari segment,” noted a member of the Handloom Weavers Association.
