Business

Declining exports of cotton textiles - a matter of deep concern

ANI | September 03, 2019 02:03 PM
Dr K V Srinivasan Chairman TEXPROCIL

Mumbai (Maharashtra) [India] Sept 03(ANI/BusinessWire India): Exports of cotton textiles continued their downward spiral declining by 24.5 per cent during April-July 2019.

The provisional data for the first three weeks of August 2019 also shows that the 25 per cent decline in exports is continuing month on month basis.

"A commodity wise analysis of the data shows that while garment and made-up exports have shown a positive growth, exports of cotton yarn/fabrics are showing a declining trend. A sharp and precipitous decline especially of cotton yarn during the last four months by about 35 per cent has led to a crisis situation in the spinning industry. In fact, the monthly exports of cotton yarn are at a 5 year low of 59-60 million kgs. Exports to major markets like China have declined by 50 per cent and Bangladesh by 38 per cent and Korea by 45 per cent," said Dr K V Srinivasan, Chairman, the Cotton Textiles Export Promotion Council (TEXPROCIL).

Dr K V Srinivasan stated that made-ups and garments exports are recording positive growth mainly on account of the extension of the ROSCTL which rebates all types of State and Central taxes. This measure has not only ensured that taxes are not exported by the garment and made-up sector but also enabled them to regain competitiveness.

He has appealed to the government to also cover the exports of cotton yarn and fabrics in the ROSCTL schemes and refund the State and Central taxes. These taxes are in the range of 6-7 per cent of the value and will go a long way in mitigating the serious situation in the spinning and weaving sector.

"Many of the competing countries are gaining access in various export markets like China, South Korea, Turkey mainly on account of the preferential access given to them by the importing countries leading to further erosion of India's market share. While Vietnam has increased its exports of cotton yarn to China by 17 per cent during the last four months, India's share has declined by 16 per cent during the same period," he added.

In view of the sharp decline in exports, Dr Srinivasan stated that the sector is in a very critical situation as many production units are shutting down and needed urgent policy support. He also requested the government to extend the 3 per cent Interest Equalisation to cotton yarn.

These measures will help the cotton yarn sector and the spinning industry at large to minimise their losses and regain their competitiveness.

This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)

Have something to say? Post your comment
Must Read
Melania Trump to visit Delhi govt school during India visit: Sources
Melania Trump to visit Delhi govt school during India visit: Sources
Two Nigerians arrested for staying without valid documents in Delhi
Two Nigerians arrested for staying without valid documents in Delhi
Muktsar fines 132 school vehicles, impounds 24 in two days, while Faridkot only fined 17, impounded 4 on Monday, influential being spared
Muktsar fines 132 school vehicles, impounds 24 in two days, while Faridkot only fined 17, impounded 4 on Monday, influential being spared
SAD urges Punjab govt to declare there will be no tampering with reservation policy
SAD urges Punjab govt to declare there will be no tampering with reservation policy
Punjab to honour cops under 'Appreciate and Commend' scheme
Punjab to honour cops under 'Appreciate and Commend' scheme
Four family members shot dead by cop by visiting in-laws house
Four family members shot dead by cop by visiting in-laws house
School buses run at full speed ignoring the Apex court guidelines, authorities sleep until precious lives lost
School buses run at full speed ignoring the Apex court guidelines, authorities sleep until precious lives lost
Punjab CM asks DCs to prioritise core sectors of education, health, water & power for development
Punjab CM asks DCs to prioritise core sectors of education, health, water & power for development
A theft in the commission agents’ shop in Jaitu, town, residents allege police inaction, claim the frequent thefts are happening
A theft in the commission agents’ shop in Jaitu, town, residents allege police inaction, claim the frequent thefts are happening
Muktsar police hold an awareness seminar against drugs in village Kotli Ablu, 18 cases of having the property of drug peddlers attached forwarded to Delhi
Muktsar police hold an awareness seminar against drugs in village Kotli Ablu, 18 cases of having the property of drug peddlers attached forwarded to Delhi
Babu Singh Panjawa isn’t SC commission member, people shouldn’t be misled: Chairperson Tejinder Kaur
Babu Singh Panjawa isn’t SC commission member, people shouldn’t be misled: Chairperson Tejinder Kaur
Commissionerate Police issue various ban orders
Commissionerate Police issue various ban orders