Kancheepuram silk sarees price goes up as gold price skyrockets

Weddings get costlier this year as the prices of world renowned Kancheepuram silk sarees have gone up. This comes amid skyrocketing gold prices. As per Times of India, the cost of Kancheepuram silk saris has surged up to 50% in the past eight months. The report further mentioned that this price rise has pushed customers to shift to sarees that either have less gold, silver content or those without the metals.

Silk Saree prices rise

Times of India quoted retail textile chain brand, RmKV, which specialises in Kancheepuram silk sarees and said there has been a 20% dip in sales this wedding season

"Several customers come with a specific budget and prefer (Kancheepuram) silk sarees with less gold and silver content, while some reduce the number of sarees to suit their budget", K Sivakumar, managing director of RmKV told TOI.

He further added that this is the first time the prices of silk sarees have gone up to 35-40% in a short span of time due to the unprecedented rise in gold prices.

On October 1, 2023 the 22 carat gold prices was Rs 5,356 per gram which rose to Rs 6,830 on May 22, 2024. Similarly silver prices also surged from Rs 75.5 per gram to Rs 95.8 during the same period.

The TOI report quoted V K Dhamodaran of Kancheepuram Silk Sari Manufacturers Association who also noted that the price rise between Oct last year and this May is 40-50%.

"The cost of Kancheepuram silk sarees 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", VK Dhamodaran told TOI.

He further added that customers are buying handloom Kancheepuram silk saree with zari that does not have the mix of gold and silver as it is cheaper. This has largely impacted textile business and weaver.

As per J Kamalanathan of K S Parthasarathy Handloom Weavers Association who also spoke to TOI, the silk saree which was priced at Rs 70,000 in October last year has escalated to Rs 1.2 lakh at present.

"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 told TOI.

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