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Ceramic Association's Major Decision: Tiles Trade to Operate Only on Advance Payment Alongside Price Hike from Monday
Written byIndian Ceramic News
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Production Costs Surge by 40 to 50 Percent Due to Unbearable Increases in Gas, Diesel, and Raw Material Prices; GVT Tiles Up by Rs 5, Wall Tiles by Rs 30, and Floor Tiles by Rs 50
Morbi: In light of the current economic conditions, the Morbi Ceramic Industry has introduced significant changes to its product pricing and trade policies. Providing details on this matter, Ceramic Association President Manoj Ervadiya stated that there has been an unbearable hike in the prices of gas, diesel, petrol, and raw materials over the past 2 months. Additionally, transportation costs have soared, and there is a noticeable shortage in the supply of raw materials.
Massive Increase in Production Cost
Due to these cumulative factors, the overall production cost has seen a massive surge of approximately 40 to 50 percent. Under these circumstances, enforcing a mandatory price increase on ceramic products has become absolutely inevitable to sustain the industry.
Revised Price Structure Applicable from June 1
To counter the rising expenses, the price of GVT tiles has been increased by Rs 5 per square foot. Similarly, wall tiles have seen a price hike of Rs 30, and floor tiles by Rs 50. Prices for tiles of other dimensions have also been increased proportionally based on their sizes. All these new rates will officially come into effect from June 1. Notably, the association had already dispatched official letters to customers 15 days ago to notify them of this impending price hike, ensuring they were mentally prepared for the change.
End of the Credit System: Advance Payment is Now Mandatory
Alongside the price hike, a historic and major transformation has been introduced to the trading system itself. Manoj Ervadiya mentioned that, until now, the ceramic industry operated largely on a credit-based system. However, with business turnovers growing significantly large in recent times, the credit system has led to increased financial overheads and potential crisis situations. To alleviate this economic burden, an important decision has been declared: moving forward, all materials will be sold exclusively against advance payments.
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