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Expect huge decline in exports – Value-added sector
Dec '09
The value-added readymade garment sector fears that the shipments of products may fall by around US $300 million, due to the shortage of yarn in the domestic markets.

Normally, orders are received four months in advance, but due to shortage of yarn and other factors they do not have orders for deliveries in February.

The fallout of this situation could result in a decline of 20 percent in export of knitwear and 10 percent in woven garments, is the general fear amongst exporters.

If the situation persists there could be a decline of around $100 million in export of woven garments, $140 million in knitwear and $60 million in towels.

Exporters of value-added products argue that shipments of cotton and cotton yarn increased by more than 30 and 23 percent respectively in September and October.

Export of cotton cloth, bedwear, towel and tents also recorded a significant growth whereas export of knitwear and readymade clothes slightly decreased in this period.

Fibre2fashion News Desk - India

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