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Iranian textile exports dwindle
May '11
The Iranian year which ended on March 20, 2011, saw textile exports dwindle by 26 percent over previous year, which occurred for the first time in about two decades.

Global economic crisis and lack of necessary support from the Government have been cited by an expert on the Iranian textile industry, as the main factors responsible for the decline in exports.

According to him, around 19 percent of the Iran's total gross domestic product is contributed by the country's textile industry, which each year uses 1.2 billion metres of fabric.

In view of this fact, supporting policies need to be revised to enable the industry to take the sector to greater heights.

Necessary provisions should be made to the Government's tariff policies for supporting the domestic textile sector, the expert said.

Last year, the Iranian domestic industry exported around 3,000 tons of textiles valued at US$ 21 million, 6,000 tons of garments valuing to US$ 92 million, 8,000 tons of yarn amounting to US$ 23 million, and 29,000 tons of other fabrics worth $423 million.

There are around 9,500 textile firms in Iran, 75 percent of which are privately owned. While these privately owned firms are flourishing, the state-owned firms are mainly impeding the sector's growth.

This is mainly because these state-run units function with obsolete machineries. Hence, there is an urgent need to replace these machineries with high-tech equipments to make the industry more competitive in world markets, the expert said.

Fibre2fashion News Desk - India

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