Toy prices soar as raw material costs rise due to Gulf conflict

CHENNAI: Toy prices are rising ahead of the summer holidays as the West Asia conflict pushes up crude-linked raw material costs, making the season more expensive for parents. Prices in some categories have already increased.

Shabbir Gabajiwala, president of The All India Toy Manufacturers Association (TAITMA), said toy prices could rise 10%-40%, depending on plastic content, with products such as building blocks, children's ride-ons, toy guns etc made of plastic. "While some manufacturers have raised prices, others may to follow, as plastic costs have surged 70% from Rs 100 to Rs 170 per kg in the past month," he said. The war has led to increase in the cost of inputs such as acrylonitrile butadiene styrene (ABS), polypropylene (PP), & packaging.

Funskool India said the most impacted inputs are plastic resins - ABS and PP, which have risen 40%-60% over last month. CEO K A Shabir said, "The sharp rise in input cost is putting pressure on margins." Gujarat's Aditi Toys' founder Subhashbhai Balubhai Zala said the rise is driven by crude's volatility and supply disruptions."Prices have increased by up to 30% in certain categories at Aditi Toys," he said.