Kancheepuram silk sari prices soar due to gold spike

Kancheepuram silk saris, a popular choice for weddings and special occasions in India, have seen their prices rise by up to 50 per cent in just eight months. This surge is attributed to the skyrocketing prices of gold, a key component in the traditional zari embroidery that adorns these saris.

The price hike has impacted both consumers and weavers. Budget-conscious shoppers are opting for saris with less gold and silver content, or none at all. Leading retailer RmKV has reported a 20 per cent drop in sales. Due to the shift in customer preference, weavers are being forced to adapt their craft. J Kamalanathan of the K S Parthasarathy Handloom Weavers Association says production of premium saris, which can cost over Rs 1 lakh, has stalled due to lack of demand. Weavers are focusing on more affordable options to meet the current market trend.

The rise in gold prices is the main culprit. The price of 22-carat gold has jumped from Rs 5,356 per gram in October 2023 to Rs 6,900 per gram in May 2024. Silver prices have also increased significantly. V K Dhamodaran of Kancheepuram Silk Sari Manufacturers Association says the cost of these sarees is heavily influenced by gold and silver prices because these metals are crucial for making zari.

This price increase poses a challenge to the Rs 10,000 crore Kancheepuram silk sari industry renowned for its handloom weaving tradition. The industry caters to the global Indian diaspora and is a significant source of cultural pride.