India clothing manufacturers and retailers are expected to raise their prices by at least 10%, in order to offset losses caused by soaring raw material prices.

Cotton prices have soared 25-30% in recent months, leading to a simultaneous rise in yarn and fabric prices. Other costs, such as electricity and labor costs, are also growing at a low cost. Mr. RahulMehta, President of the clothing manufacturers association of India, said that the price of raw materials has been rising, especially the continuous rise of cotton prices. Other raw materials and electricity prices are also rising.

He said, "because of inflation, labor wages are also rising linearly, so garment manufacturers have no choice but to pass on the burden of increase to consumers through rising prices." However, MrJSuresh, chief executive of Arvind brand, said the Arvind brand did not plan to raise its price in the autumn and winter of 2010, but raised its price in the spring and summer of 2011. He said clothing manufacturers consider raising prices mainly to offset the increased burden of fabric and other raw materials.