Exports Slump 11% In June

The country's exports declined again for the second consecutive month, with the data for June (over the same period in 1997-98) registering a fall of 11 per cent at the level of $2.35 billion.

In addition, for the first time this fiscal year, imports have registered a year-on-year negative growth. For the month of June, the country's imports were 3.78 per cent lower than the imports in the previous year. Imports during May 1998 were $3.34 billion representing a growth of 4.25 per cent over the level of imports valued at $3.21 billion in May 1997.

This decline in imports, sources said, could be reflective of the four per cent special additional duty on imports levied by the finance ministry in the budget presented on June 1. Despite this drop in imports, the trade deficit in April-June stood at $2.4 billion compared with $1.39 billion during April-June 1997. Exports in June were valued at $2.35 billion, compared to $2.66 billion in June 1997. (Exports declined at 17 per cent in May and grew a miniscule 2.21 per cent in April.) In rupee terms, the exports were Rs 9,909.68 crore, which is 4.03 per cent higher than the value of exports during June 1997. Imports during June 1998 are valued at $2.98 billion representing a 3.78 per cent decline over $ 3.11 billion recorded in June 1997.

Available provisional data show a decline in exports from Delhi airport and internal container depot at the capital; and from ports in Mumbai, Kandla and Vishakhapatnam. Data, according to a government press release, indicates that exports from Bombay sea port were also affected owing to the strike by clearing agents in June.

The Kandla ports reported low exports owing to the dislocation caused by the cyclone in early June. Exports of cotton yarn and fabrics, electronics hardware, transport equipment and machinery sectors continue to show a negative trend.

Exports during April-June 1998 are estimated at $7.48 billion, which is lower than 7.94 per cent lower than the level of $8.14 billion in April-June 1997. In rupee terms, the exports grew by 4.85 per cent in the same period. Imports during the April-June 1998 are estimated at $9.89 billion which is 3.75 per cent higher than the level of $9.53 billion during the same period last year. Oil imports during April-June 1998 are valued at $1.32 billion which is 35.86 per cent lower than oil imports valued at $2.05 billion in the corresponding period last year. Non-oil imports during April-June 1998 are estimated at $8.57 billion which is 14.66 per cent higher than the level of such imports ($7.47 billion) in April-June 1997.