In this article
Short answer: a towel is mostly cotton by cost, so when yarn prices move, towel prices follow. A heavy towel is more exposed than a light sheet. This is why a quote carries a validity date, and why confirming an order with an advance is what fixes your price.
The chain
| Step | What moves the price here |
|---|---|
| Cotton crop | Weather, acreage, government support prices, world demand |
| Yarn | Cotton price, spinning capacity, energy cost |
| Fabric | Yarn price, weaving cost |
| Finished towel or sheet | Fabric, dyeing, stitching, packing |
| Your invoice | All of the above, plus the exchange rate |
A change at the top takes a few weeks to work down, because units hold some stock bought at the old price.
How big is the effect
It depends on how much of the product is yarn.
An illustration, not our costing: suppose yarn made up half the price of a towel. A 10 percent rise in yarn would then add about 5 percent to the towel. On a $2.50 towel, that is about 12 cents.
| Product | Exposure to cotton price |
|---|---|
| Heavy terry towels and bath mats | Highest. A lot of cotton per piece |
| Bathrobes | High |
| Bed sheets | Lower. Light fabric, more of the cost is in weaving and sewing |
| Embroidered and custom-packed goods | Lower still, as a share |
The exchange rate
Export quotes are usually in US dollars, and costs in India are in rupees. A weaker rupee gives exporters room. A stronger rupee squeezes them. Over a few months this can matter as much as cotton.
Why a quote has a validity date
A supplier quoting today is pricing yarn it has not yet bought. A validity of 15 to 30 days is the period for which it is willing to carry that risk. After it, the price is checked again. A supplier offering a price "valid for a year" has either padded it or does not intend to honour it.
When your price is fixed
Your price is fixed when the order is confirmed and the advance is paid. At that point the yarn is booked for your order. Later movements, up or down, do not change your invoice.
Four ways to protect your price
- Confirm quickly. If the price works, place the order within the validity period.
- Book the year, ship in parts. Agree a larger quantity and take it in two or three shipments. Ask what commitment and advance that needs.
- Order ahead of the season. If you know you need linen in October, order in June instead of waiting.
- Keep the spec stable. Every change reopens the price.
What not to do
- Don't wait for cotton to fall. Nobody forecasts it reliably, and running out of linen costs more than a few cents a towel.
- Don't accept a price cut that comes from a lighter towel. Check the piece weight on every quote. See how to compare supplier quotes.
Reading a price rise
If a supplier raises a price, ask what changed: yarn, exchange rate, freight or the spec. A straight answer names one of them. Our public price bands are deliberately wide so that normal yarn movement stays inside them: for example, $2.20 to $2.80 for a 500 to 550 GSM bath towel.
Budgeting
For an annual linen budget, use the middle of the band and add a contingency of 5 to 10 percent for cotton and currency. The hotel linen budget calculator gives quantities and a cost range.
Current per-kg ranges are on the towel price per kg page. To get a quote with a clear validity date, send us your spec.
Share this article
Want pricing on what you just read?
Leave your work email — our export desk replies with specs, MOQ and a quote within 1 business day.
Written by
Dr Abin Babu
Founder & Chairman, Anabyn Global Ventures
Anabyn exports hotel and home linen from Kerala, India. These guides come from the questions buyers ask our desk. About the team
Ready to Order?
Send us your specification. We reply within one business day and send a priced quote within 48 hours.
Request an Export QuoteWhere to go next