Exports Fall By 10 Per Cent In April

The dramatic export slow-down in April this year was led by items that had put up a good performance in 1996-97. These include ready-made garments, agricultural and marine products, basic chemicals, electronics and computer software.

Exports during April 1997 estimated at $2.5 billion registered a fall of 10 per cent in comparison with the export figure of $2.8 billion in April 1996.

Based on prima facie data available with the commerce ministry, many items whose exports had grown at a healthy rate in the last financial year, slowed down in April, said officials. This has generated concern, since it implies that the slow-down is more broad-based than envisaged.

 

Sectors that registered a good export growth in 1996-97 include agriculture and allied products, marine products, basic chemicals and electronic goods.

The commodities whose export growth was negative during the year include tea, coffee, cereals, leather, leather goods, gems and jewellery, and computer software.

Ministry sources said the fall in exports in the first month of the current financial year is being led by basic chemicals, marine products and electronics items.

Exports of chemicals and related products rose by 7.4 per cent in 1996-97, while basic chemicals exports went up by 15 per cent. These exports slowed down in April this year.

Agriculture and marine exports put up a dismal performance in April, reeling under the Supreme court ruling on aquaculture farms and a total ban on export of wheat and wheat products. Rice exports, too, were not up to the mark, officials said. Export of ready-made garments had risen by 1.88 per cent and textile exports by 7 per cent in 1996-97.

However, in April this year, exports of ready-made garments are estimated at $342 million, indicating a decline of 14 per cent in comparison with April 1996, according to provisional data available with the export promotion councils.

Nevertheless, textile exports went up by 5 per cent in April.

The textile export target for 1997-98 has been set at $13.3 billion (inclusive of handicraft, jute and coir).

The rise, measured in rupee terms, is 10.7 per cent. The star performers in textile exports are cotton yarn (34 per cent rise) followed by wool and woollens (24.8 per cent) and cotton fabrics (22.5 per cent). Export of handloom products rose by 23 per cent over April 1996. Exports of man-made textiles valued at $80.66 million have risen by 9.7 per cent.