KARACHI, Sept 27: Leading fabric, garment and cloth makers expect normal sales in this Eidul Fitr. They rule out any negative impact on the consumers’ buying sentiments in the wake of uncertain political situation.

Despite the fact that soaring prices of essential items have squeezed the buying power of consumers, leading players do not see rising inflation to make significant impact on the buyers’ sentiments especially on the eve of Eid.

However, some view increase in prices of daily use commodities as a negative factor for Eid shopping fervour.

Market players say that at Eid many parents compromise their personal needs but go out of the way to provide the best for their children. They sometimes borrow from relatives and friends.

Besides, the prices of fabric and garments have not increased much despite rising cost of production of fabric owing to higher transportation cost and utility charges. The prices of locally-made clothes and garments have remained unchanged as compared to last year because of stability in cotton yarn prices.

With no price increase in fabric this year as claimed by leading market players, retailers have their own rules to grab as much as they can depending on the rising presence of consumers at the bazaars.

If they charge Rs300-400 for a frock in the first week of Ramazan, they will be unilaterally charging Rs800-900 for the same item by the end of the holy month.

In October last year a devastating earthquake had shaken the consumers’ sentiments and the sales in local markets remained depressed for the first 15-20 days of the holy month. However, the last 10 days covered up the sales targets to some extent.

This year, there has been some inconsistency in the country’s political scenario caused by the killing of Akbar Bugti. There are reports of some business slowdown in Balochistan after the killing of Baloch leader as market people say wholesale supply of fabric, garments and clothes from Karachi has been slowing to the big province.

Giving an overall picture, Director Bonanza Garments Industries Hanif Bilwani believes that there has been some 10 per cent drop in sales in August and September because of falling buying power owing to inflationary trend in essential items.

“Despite slowdown in sales during the last two months I think sales in this Eidul Fitr will remain normal as the country’s population has also been rising which create demand for goods coupled with increase in salaries in various offices and industries,” he said.

The pace of shopping witnessed in the last three to four years because of rising stocks and property prices would not be seen this year, he said.

Mr Bilwani said that the increase in utility charges and rising transportation cost has pushed up the production cost by five to 10 per cent. However, he said prices of fabrics had been normal this year.

Managing Director of Raja Saheb outlets Javed Riaz told Dawn over telephone from Lahore that sales would remain normal this year despite the fact the markets were yet to see buyers in larger numbers because of hot weather and last days of September.

He said people would come out after October 1 with their salaries in hands and last 10 days would be very hot in terms of sales.

He ruled out any political impact on the consumers’ mind towards shopping but the increase in prices of essential items might have shrunk the buying power of some people.

Partner Sanaullah Departmental Stores Zakir Zaki also predicts good sales prospects in Eid this year by saying sales will touch the boom period in the last 10 days of Ramazan.

He did not agree that inflationary trend in prices of essential items make any big impact on Eid shopping. “People buy definitely on the eve of Eid and inflation has a very negligible impact on consumers’ buying tendency during Eid shopping,” he added.

It may be noted here that food inflation, measured by consumer price index (CPI) was 8.2 per cent in January 2006 and in August it was recorded at 11.6 per cent.Director Al Karam Textile Mills Rafeeq Ibrahim said that sales of garments and fabrics would remain as usual this Eid as there had not been any increase in prices of fabrics and clothes.

Even fabric and clothes have become cheaper this year because of stability in yarn prices coupled with intense competition with imported fabrics, he said, adding that the cost of production of goods has increased due to rising utility charges and higher transportation cost.

He said under invoiced and mis-declared Indian and Chinese garments were finding their way into Pakistan through illegal channels, posing serious threat to the local industry.

Director Iqbal Silk Mills Anwar Aziz said that there would not be a big boom in sales as compared to previous years because inflation had severely affected the purchasing power.

“There will be normal sales of fabric and clothes this year,” he said adding that cheap fabrics and clothes sales will remain high compared to thin sales in higher price fabrics.

Eidul Fitr, he said, is falling at a time when winter is around the corner and people keep in mind the winter season before making purchases for Eid.

President-elect Karachi Chamber of Commerce and Industry (KCCI) and leading fabric and apparel producer Majyd Aziz sees big sales growth this year on the eve of Eidul Fitr. However, he ruled out any negative impact on the consumers’ spending because of rising inflation in essential items.

“The markets will see a lot of activity in this Eid as markets reports suggest that supply is short against the rising demand of fabric, clothes, ladies suiting, shoes etc.,” he said.

He said ready-made shalwar kameez would be sold in higher numbers because of their competitive rates as people now avoid going towards tailors who have increased stitching rates phenomenally.

A large portion of Eid shopping especially in the last 10-15 days is shared by shopping for weddings to be held after Eid, he said.

However, he feared that the arrival of mis-declared and under-invoiced fabrics, gents and ladies suiting from India and China were eating up the local industry as their rates were low as compared to locally produced goods.