There’s no doubt that jeans are an iconic anchor to any wardrobe, from threadbare rock’n’roll to on-point fancy denim. You may wear jeans to almost any occasion, from dates to casual Fridays. Well, it is time to bag this favourite piece of clothing, as soon you will end up paying more!
Reason? Cotton futures soared beyond $1 a pound for the first time in a decade, as supply disruptions and bad weather threaten supplies, driving up garment prices throughout the globe. In simple terms, the increasing prices indicate that apparel manufacturing costs are rising, which retailers may attempt to pass on to buyers.
Cotton futures surpassed the $1 per pound bar on Tuesday, as supply concerns drive up prices for the fibre. Cotton prices haven’t been this high since November 2011. Cotton prices have risen as a result of bad climate and shipping problems, causing to significantly boost apparel prices worldwide. Its price has risen by 28 per cent this year, fueled by traders looking to close short bets.
The cost of Dharwad Hybrid Cotton-32 (DCH-32) has roughly doubled in the last year, owing to concerns of a production deficit because of less crop planting. Local prices have also been impacted by the international rise in Pima and Giza varieties.
Rain-soaked fields in the United States and bollworm-infested fields in India are causing problems for crops in numerous countries. Increased transportation costs and geopolitics are also presenting problems for supplies, with international outrage over labour breaches in Xinjiang, China’s largest producing province.
All of this is conspiring to raise prices, which implies the price of producing apparel will climb as well. If retailers attempt to pass on the cost, it will tighten margins for clothes manufacturers and cause an increase in prices of not just jeans but also shirts, t-shirts etc.
In most cases, the order-to-production cycle takes few months. As a result, the current increase in cotton costs will take a few more days or months to be reflected in products arriving in stores.