Indias yarn exports tumbled by 20 per cent during the first three months of the current annual year as compared to the corresponding period last year primarily on fall in shipments to south-east Asian region, the Cotton Textiles Export Promotion Council (Texprocil) said.
Total yarn exports from January to March has been estimated to be 123.43 million kg, valued at Rs 1413.95 crore, against 141.72 million kg worth Rs 1619.73 crore during same period last year, it said.
Fall in yarn exports came after a buoyant trend during the last three years, when the shipments doubled.
Yarn exports are taken into account for the annual period by the textile industry, though the government considers it on a financial year basis only. For 1997-98, yarn exports increased by 4.4 per cent to 485.17 million kg from 464.67 million kg in 1996-97.
Exports have slid mainly on a fall in shipments to the south-east Asian region, which accounts for 45 per cent of total yarn exports. Shipments to the region have slid by over 80 per cent since December, industry sources said.
Exports to south-east Asia has been hit in view of the currency crises. But for the fall in exports to the south-east Asian region, India has been maintaining its shipments to other destinations, especially to Europe and United States.
Indian yarn exporters were now looking forward to a removal of quotas to the US.
There is no quota for export of yarn from Pakistan to the United States. We have also asked the government to remove the quota, Indian Cotton Mills Federation secretary general M P Gajaria said.
The quota has been fixed bilaterally between the two countries and India would require to offer something as a quid pro quo to have the quota removed.
The yarn scenario is causing concern to the spinning sector in general in view of demand recession in the domestic market. Indias yarn exports had touched 514.47 million kg, valued at Rs 6064.23 crore in 1997 from 243.50 million kg worth Rs 3127 crore in 1995.
However, total exports of cotton textiles during the period increased both in terms of rupees and US dollars by two per cent.
Cotton textiles exports during January-March this year have been estimated to be $877.26 million (Rs 3442.38 crore).
