Price hike of raw materials pushes boutique businesses into harsh time
Mahmuda Shaolin | Wednesday, 30 July 2008
Prices of raw materials for boutique products have increased by at least 20 per cent over the last one year pushing the boutique businesses into a very harsh time.
"Prices of raw materials like fabrics, colours, yarn and kerosene have increased by 15 to 20 per cent in one year," said Khalid Mahmud Khan, director of Kay Kraft, one of the city's leading handicraft shops.
Market sources said the prices of chemicals that are used in dyeing and washing marked a 30-50 percent rise in the last one year following a rise in prices of petroleum products.
According to importers, a tonne of caustic soda, the most consumed chemical item in the washing plant, is being sold at US$515 against its last year's rate of US$460.
Boutique shop owners said prices of all chemicals increased by 30 to 35 per cent on an average from their previous rates during the last one year. Chemicals like Titanium Dioxide, Binder, Golden Afsan (Metal), and Colour are selling on an average at Tk 275 per kilogram (Kg), Tk 170 per kg, Tk 2000 per kg and Tk 200 - Tk 550 per kg respectively which was Tk 160 per kg, Tk 125 per kg, Tk 1400 per kg and Tk 160 -Tk 350 per kg respectively during the last year.
"We are now passing a very crucial time because of soaring prices of our raw materials. Non-availability of electricity is also a big problem to continue the boutique business," said the Kay Kraft director.
"Frequent power outage is taking a huge toll on our business because we have to spend extra amounts ranging from Tk 5,000 to Tk 6,000 per month on all average to use generators in our different outlets increasing our production cost by at least 10 per cent," Mr. Khalid told the FE.
"If the situation remains unchanged, we will not be able to make a balance between demand and supply during the upcoming Ramadan because 75 per cent of our total annual sales take place during that season," he added.
"Our production cost rose by 5 to 10 per cent due to increase of our workers' salary, shop rents, raw materials cost and making charge booming up," said Tahsina Shahin, proprietor of Shada Kalo, another Boutique house of the city.
"Salaries for workers have increased by Tk 2,000 to Tk 7,000 against Tk 5,000 and we are now paying on an average Tk 120 per product as making charge which was Tk 100 a year ago," she said.
"If we increase prices of our products, we will lose our customers. We can't charge extra money because we depend on the customers," she said.
Jamil Hossain, manager of boutique house in Gulshan, also expressed the similar views and said that production costs have increased by 10 per cent as the fabric colour prices have increased by at least Tk 50 per kg. Making charges for dresses and sharees have also increased by Tk 30 to Tk 150.
"We're forced to increase the price of each product by Tk 100 to cover huge production cost and to meet increased salary of sales persons," he said.
Boutique owners have urged the government to arrange for them loans as small and medium enterprises (SMEs) to help them survive in the business.
Around 2.0 million people are directly and indirectly involved in the country's handicrafts sector. Most of them are women who directly contribute to the country's rural economy, according to the handicrafts sector.
"Prices of raw materials like fabrics, colours, yarn and kerosene have increased by 15 to 20 per cent in one year," said Khalid Mahmud Khan, director of Kay Kraft, one of the city's leading handicraft shops.
Market sources said the prices of chemicals that are used in dyeing and washing marked a 30-50 percent rise in the last one year following a rise in prices of petroleum products.
According to importers, a tonne of caustic soda, the most consumed chemical item in the washing plant, is being sold at US$515 against its last year's rate of US$460.
Boutique shop owners said prices of all chemicals increased by 30 to 35 per cent on an average from their previous rates during the last one year. Chemicals like Titanium Dioxide, Binder, Golden Afsan (Metal), and Colour are selling on an average at Tk 275 per kilogram (Kg), Tk 170 per kg, Tk 2000 per kg and Tk 200 - Tk 550 per kg respectively which was Tk 160 per kg, Tk 125 per kg, Tk 1400 per kg and Tk 160 -Tk 350 per kg respectively during the last year.
"We are now passing a very crucial time because of soaring prices of our raw materials. Non-availability of electricity is also a big problem to continue the boutique business," said the Kay Kraft director.
"Frequent power outage is taking a huge toll on our business because we have to spend extra amounts ranging from Tk 5,000 to Tk 6,000 per month on all average to use generators in our different outlets increasing our production cost by at least 10 per cent," Mr. Khalid told the FE.
"If the situation remains unchanged, we will not be able to make a balance between demand and supply during the upcoming Ramadan because 75 per cent of our total annual sales take place during that season," he added.
"Our production cost rose by 5 to 10 per cent due to increase of our workers' salary, shop rents, raw materials cost and making charge booming up," said Tahsina Shahin, proprietor of Shada Kalo, another Boutique house of the city.
"Salaries for workers have increased by Tk 2,000 to Tk 7,000 against Tk 5,000 and we are now paying on an average Tk 120 per product as making charge which was Tk 100 a year ago," she said.
"If we increase prices of our products, we will lose our customers. We can't charge extra money because we depend on the customers," she said.
Jamil Hossain, manager of boutique house in Gulshan, also expressed the similar views and said that production costs have increased by 10 per cent as the fabric colour prices have increased by at least Tk 50 per kg. Making charges for dresses and sharees have also increased by Tk 30 to Tk 150.
"We're forced to increase the price of each product by Tk 100 to cover huge production cost and to meet increased salary of sales persons," he said.
Boutique owners have urged the government to arrange for them loans as small and medium enterprises (SMEs) to help them survive in the business.
Around 2.0 million people are directly and indirectly involved in the country's handicrafts sector. Most of them are women who directly contribute to the country's rural economy, according to the handicrafts sector.