BANGALORE | AHMEDABAD | KOLKATA: Though cotton prices are down 30% in two months, large clothing companies have no plans to reduce prices and pass on the benefit to consumers for propping up falling demand.
“When commodity prices change, the difference is only as good as the amount passed on through the last leg of production,” said Arun Sirdeshmukh, chief executive of the 47-store value apparel chain Reliance Trends, to explain why mill owners and garment units are not lowering prices.”Unless prices remain steady for a while, there may not be a change in pricing,” Sirdeshmukh said.
Manufacturers who set their sights on Brazil’s booming fashion market may find the costs daunting.
“It’s one of the most difficult countries to export to. There are more duties, fees and regulations than in most other countries, said Tom Gould, president of Tom Gould Customs Consulting and a senior compliance specialist at Zisser, a San Diego–based law firm that specializes in customs law.
Marc Willingham has first-hand experience with the challenges of cross-country business as president of U.S. operations for the Brazilian footwear collection Carmen Steffens.
“There’s a huge opportunity going into Brazil,” he said. “The currency is so strong, and the people are buying and they love big [international] brands [such as] Victoria’s Secret and MAC. The big challenge is the taxes and duties. It’s a protected market.”
Read More: http://www.apparelnews.net/news/international/Brazil-Is-Open-for-Business-but-Challenges-Abound
Commodity analysts say that there is a bearish outlook for cotton in the next year which means the farmers may not get a very high rate. The April 2012 contract at National Commodity and Derivative Exchange (NCDEX) is quoted at Rs 792 per 20 kg, which comes to Rs 3960 a quintal. If futures are taken as an indication, the rates may open at lower note at the start of the harvest season in the next year.
Read More: http://timesofindia.indiatimes.com/city/nagpur/Cotton-farmers-burdened-by-early-rains-govt-policy/articleshow/8650805.cms