As the wedding season approaches, families are flocking to textile showrooms to purchase Kancheepuram silk saris. However, they are facing financial strain as the renowned silk saris have seen a significant price increase, attributed to the soaring prices of gold on the international market. Over the past eight months, the price of Kancheepuram silk saris has risen by up to 50%, prompting cost-conscious consumers to explore alternatives. Many are opting for saris with reduced gold and silver content or those completely devoid of these valuable metals.
During the ongoing wedding season, RmKV, a prominent retail textile chain known for its expertise in Kancheepuram silk saris, is experiencing a 20% decline in sales of this particular product, attributed to the surge in prices. K Sivakumar, the managing director of RmKV, said 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, the managing director of RmKV, emphasized that the current spike in silk sari prices, escalating by 35-40% in a short timeframe, is unprecedented. This surge is directly correlated with the extraordinary increase in gold prices. As of May 21, 2024, the price of 22 carat gold surged from Rs 5,356 per gram on October 1, 2023, to Rs 6,900 per gram. In parallel, silver rates also experienced a substantial rise, climbing from Rs 75.5 per gram to Rs 101 per gram during the same period.
According to a report of TOI, This has hit the Rs 10,000 crore silk sari industry in Kancheepuram hard, where the handloom is woven for the global Indian diaspora. V K Dhamodaran of Kancheepuram Silk Sari Manufacturers Association, said the price increase of the saris between Oct last year and this May is 40-50%.
The cost of Kancheepuram silk saris is predominantly influenced by the rates of gold and silver, as these metals are integral to crafting the 'zari' embellishments found on traditional silk saris," K Sivakumar explained. "In response to the escalating prices, customers are increasingly opting for handloom Kancheepuram silk saris with 'zari' that does not incorporate a blend of gold and silver, as these alternatives offer a more affordable option.