CHENNAI: Toy prices are rising ahead of the summer holidays, as conflict in West Asia drives up raw material costs linked to crude oil, making the season more expensive for parents. Prices have already risen in some categories.
Toy prices may rise by 10% to 40%, depending on the plastic content, with products like building blocks, strollers, toy guns etc made of plastic, said Shabir Jabbajiwala, president, All India Toy Manufacturers Association (TAITMA). “While some manufacturers have raised prices, others may follow, as plastic costs have risen by 70% from Rs 100 to Rs 170 per kg in the past month,” he said. The war increased the cost of inputs such as acrylonitrile butadiene styrene (ABS), polypropylene (PP), and packaging. The most affected inputs are plastic resins – ABS and PP, which are up 40%-60% over the past month, Funskool India said. “The sharp rise in input cost is putting pressure on profit margins,” CEO KA Shabbir said. Gujarat-based Aditi Toys founder Subhashbhai Balubhai Zala said the rise was driven by crude oil volatility and supply disruptions. “Prices have gone up by up to 30% in certain categories at Aditi Toys,” he said.