Kanchipuram silks to cost more as silver shoots up

Expect a price shock if you are in the market for a Kanchipuram silk sari. As prices of raw silk and silver have shot up, sellers are considering when, not whether, to hike prices.

“A minimum 15% increase is certain,” says Rm K. Sivakumar, owner of RmKV Silks. “We are unable to keep the prices at current level,” confirms Kuppuswamy Chetty of Nalli Silks.

In Kanchipuram, a temple town 75km from Chennai renowned for its silk saris, weavers have already told traders about the imminent price hike. The Kanchipuram sari, like Champagne, is protected by a ‘geographical indication’— no other place can claim to produce a Kanchipuram — and it is a must at every south Indian wedding. It is also among the costliest silks because a lot of silver goes into making its zari patterns and borders.

Silver prices have risen by 29% in last one tear. It’s now close to Rs 47,000 a kg. The brocade thread contains 52% silver, a bit of gold and cheaper metals like copper and aluminium. Each wedding sari requires at least 242g of silver.

“Only Kanchipuram and Arni silk saris use silver, therefore the price increase will be mainly in these two categories,” says Chetty.

“Raw silk prices have risen from Rs 2,600 a kg to Rs 3,400 over the past couple of months. Wages have also risen by more than 40% in three years,” says Sivakumar. While the weavers wanted prices raised immediately, retailers are worried as sales have been slow for a few months. “We have never seen this prolonged lull in sales. We hope it will turn around by August,” Chetty says.

As the Aadi or Shravan month between 15 July 15 and 15 August is considered inauspicious for wedding purchases in the south, the price rise will probably be effected in August.