The textile and clothing industry has reiterated its demand for reintroduction of some of the export incentives that were withdrawn in the foreign trade policy as exports of several products, including readymade garments, dropped last month compared to the same period last year.
The value of cotton yarn, fabrics, made-ups, handloom products exported in August was $863 million as against $932 million in the same period in the previous year. In respect of man-made yarn, fabrics and made-ups, exports last month were to the tune of $400 million as against $458.64 million in the year-ago period. Readymade garments saw a decline of 7.32 per cent in exports in August.
D.K. Nair, Secretary General of Confederation of Indian Textile Industry, said the textile and clothing industry was already facing several challenges and there is a crisis developing now as garment exports have also fallen.
ADVERTISEMENT
Cumulative exports of readymade garments (from April to August) have seen 4.94 per cent growth compared to the same period last year. So, the decline in exports is only recent. The subsidy amount under Technology Upgradation Fund scheme has not been disbursed since June 2014, he said.
T. Rajkumar, Chairman of Southern India Mills’ Association, said the decline was more in value terms as there was price pressure and in terms of volume, the difference could be less.
Exporters are affected by two major reasons — the demand is down in European Union (almost 35 per cent of textile exports and 40 per cent of Indian garment exports is to the EU), and currency volatility. The industry expects exports to China and the EU to pick up in the coming months.
ADVERTISEMENT