Skyrocketing gold prices push cost of Kancheepuram silk saris up by 50% | India News – Times of India

CHENNAI: It is that time of the year when families throng textile showrooms to buy Kancheepuram silk saris for the wedding season. But, it is burning a hole in their pockets as the internationally renowned silk saris have become dearer due to the skyrocketing prices of gold.
The cost of Kancheepuram silk saris has surged up to 50% in the past eight months making price-conscious consumers shift to saris that either have less gold and silver content or those without the two valuable metals.

Leading retail textile chain brand, RmKV, which specialises in Kancheepuram silk saris, is witnessing a 20% dip in the sale of this product during the current wedding season in view of the price rise. “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.
‘Customers are now buying sari with zari sans gold-silver mix’
This is for the first time we are experiencing the cost of silk saris going up to 35-40% in a short span of time in the wake of unprecedented increase in gold prices, K Sivakumar, managing director, RmKV told TOI.
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. 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 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 said.
“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.
Woven with silk, gold and silver, Kancheepuram silk saris are worn on special occasions and festivities. Popular for their patterns in sari borders, the GI-tagged product has undergone a transformation to cater to the demand in the modern times, wherein images of wedding couples are woven on these saris.
J Kamalanathan of K S Parthasarathy Handloom Weavers Association says production of premium saris have come to a standstill. “For instance, the cost of a silk sari, which was priced at Rs 70,000 in Oct last year, has escalated to Rs 1.2 lakh at present. Since there are only a few takers for such premium category saris after it became expensive, weavers have turned their attention towards the affordable (sari) segment,” he added.