Exporters tweak products to offset rising input costs

A sustained rise in input and logistics costs, triggered by the West Asia crisis, is squeezing Indian exports, with firms across sectors finding it increasingly difficult to pass on higher prices to global buyers.

- PUSHPITA DEY

From engineering goods to garments, exporters say overseas customers remain highly price-sensitive, prompting companies to absorb the shock through cost-cutting, product tweaks and a sharper focus on the domestic market.

“Due to the surge in prices of industrial diesel, furnace oil and plastics, along with higher freight costs, input costs are up 10-15%. We have orders for the next three months, but costs have risen since those orders were placed. Customers are not always willing to accept higher prices,” said Sanjoo Tandon, vice-president (international business) at Eastman, an exporter of forging, machining and casting parts.