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Clothing exports plunge 17% in October
Dec '09
India garment shipments to overseas markets dropped by 17 percent in October 2009 to US $603 million, when compared with figures, a year ago. This has been attributed to other countries like Vietnam and Bangladesh eating into market shares of Indian exporters.

According to the Chairman of the Apparel Exporters Promotion Council (AEPC), rising cost of raw cotton is increasing the cost of yarn and fabrics, the last being the main raw material for manufacturing of clothing.

He said that it was not possible for the garment manufacturers to absorb this huge cost increase, nor could they pass it on to the buyers, due to which, other countries like Vietnam and Bangladesh were reaping the benefits.

Exports share of clothing to India's biggest buyer; US fell by 6.46 percent to $2.27 billion during January to September 2009, when corresponded with $3.07 billion in the same period in 2008.

Mr Vaid said that while benefits in terms of duty draw back rates rose from 11 to 17 percent for the Chinese textile exporters in the same period, Indian manufacturers could avail duty draw back rates at just 8.8 percent, which proved to be a big disadvantage.

Fibre2fashion News Desk - India

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