Apparel exports decline by 13%

Apparel exports declined around 13 per cent to $8.79 billion in the first 11 months of 2009-10, primarily due to significant increase in raw material cost during the year which led to loss of orders. 

The apparel industry had been reeling for the past two years due to the global economic downturn which led to rapid reduction in orders from developed markets, exchange rate fluctuations and, currently, due to unprecedented rise in raw material costs. 

“The last six months have been particularly rough for our sector. Raw material prices (cotton yarn) went up by an astronomical 40-50 per cent in this time frame. Garment exporters could not pass on these increases to their buyers, nor could they absorb the same,” said Premal Udani, chairman, Apparel Export Promotion Council (AEPC). 

In the light of the recent steps taken by the government to halt raw cotton exports and take back incentives for yarn exports, AEPC pitched for calibrated regulation of raw material exports from the country. 

Udani said there was a universal shortage of cotton in the global market and prices have been rising. However, yarn manufacturers are finding it lucrative to export yarn rather than sell it in the domestic market.