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Exports from textile sector surge
Nov '09
After a long time, exports from the textile sector have recorded a positive growth in shipments from the industry in October on the back of a surge in exports of raw cotton and cotton yarn.

Overall exports from the textile sector witnessed a growth of 19.42 percent in October from a year ago, while textile goods were also able to register a growth of 11.33 percent in the same month over that in the previous month.

This surge in shipments in the month of October has also helped in narrowing the negative growth figures for the first four months of the current fiscal year beginning from July to just 4.72 percent, when corresponded with the same period of 2008.

The recovery has mainly led by a surge in exports of raw cotton and cotton yarn, which has also led to a flare up in prices of cotton yarn by 25-30 percent, leaving the value added product exporters of home textiles and apparels in the lurch.

Figures culled from the website of the Federal Bureau of Statistics reveal that, export of raw cotton rose phenomenally by almost 79 percent, whereas, export of cotton yarn also grew 14.06 percent in the first four months of the fiscal.

But experts from the sector have derided exports of raw cotton and yarn by saying that the surge in exports should not be viewed as a positive development as the country is exporting raw materials, which could fetch better price if exported in value-added form.

The export of yarn other than the cotton yarn also recorded 82 percent growth during July-October of current fiscal, but export of knitwear was down, almost eight percent during the months under review.

Exports of bedwear decreased nine percent, towel export declined 9.82 percent, tents, canvas & tarpulin fell 13.07 percent and shipments of cotton fabric was down 30.41 percent.

Fibre2fashion News Desk - India

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