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Unit prices of textile export products take a direct hit
May '09
The per unit price realization of the textile and garment industry has fallen substantially in the first few months of the current fiscal (July-June) in comparison to the prices prevailing in the same period of the previous fiscal.

Since the unfolding of the economic crisis, buyers are consistently demanding lower prices for the products which is the main reason for the fall in per unit prices and in order to keep their wheels moving, the exporters are yielding to the demands.

The other big reason is that raw material prices were at their peak in the same period of last fiscal, but in the first few months of the current fiscal, they had bottomed out including those of cotton and petrochemicals, due to crash in commodity prices.

In the first nine months of the current fiscal, exports from the textile and garment industry fell by 7.63 percent to US $7.22 billion from $7.82 in the corresponding period of the previous fiscal.

Among the major textile products which have been hit be lower per unit prices are tents and canvas 12.77 percent, towels 11.53 percent, raw cotton 11.84 percent, cotton yarn 7.80 percent and knitwear down 5.93 percent.

Fibre2fashion News Desk - India

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