Textile and clothing exports from the country between April and December 2021 were up 18 % in dollar terms and almost 25 % in rupee terms compared to the corresponding period in 2019, according to data available.
While the total textile and apparel exports in April - December 2019 were to the tune of $ 25 billion, it increased to almost $30 billion during the same period last year. In rupee terms, the exports grew from ₹ 1,77,803 crore to ₹ 2,21,528 crore. While cotton yarn, fabric and made-ups saw more than 40 % growth in dollar and rupee terms, ready made garment grew only 2.69 % in rupee terms (between April and December 2021 compared to the same period in 2019) and saw a negative growth of 2.81 % in dollar terms.
Overall textile and clothing exports are expected to be a little more than $ 40 billion this financial year (2021-2022) compared as against the target of $ 44 billion. The main area of concern is exports of apparels, Textiles Secretary Upendra Prasad Singh told The Hindu on Wednesday.
Many garments units, especially those located in Tamil Nadu, Karnataka, national capital region, and Punjab remained shut between April and June in 2021 because of the spread of COVID-19. “We have seen growth (in exports) in terms of value and quantity, especially during the last three months,” said A. Sakthivel, president of Federation of Indian Export Organisations.
According to Raja M. Shanmugham, president of Tiruppur Exporters’ Association, garment exports from Tiruppur this fiscal is expected to be almost ₹ 32,000 crore as against ₹ 24,000 crore last financial year. But, the growth is mainly in terms of value. While the exporters have orders, high raw material prices are a deterrent to increase in volume. If the current trend in raw material prices continues, sustaining this will also be a challenge, he said.
“There is a continuous spike in cotton yarn prices. Even if I have orders, I am unable to service those orders for want of funds,” he said. Majority of the garment exporting units are MSMEs and they are labour-intensive and vulnerable to several external factors. The government should step in to bring stability in raw material prices, Mr. Shanmugham said.
Published On : 03-02-2022
Source : The Hindu
