The country's readymade garments exports target of $3,410 million for the current fiscal year (2006-07) is in jeopardy mainly due to the tough competition in international market and high cost of production, according to trade sources.
"Fiscal year target is not possible to be achieved as the readymade industry is faced with tough challenges and increasing problems which have scaled down its export ratio and put a negative impact on its manufacturing growth," an exporter said.
"The aggregate exports of readymade garments from the country currently stand at $1724 million and we have still to fill the remaining gap of $1686 million in five months of the current fiscal year. That is difficult enough," he said.
He said that high cost of production, ie increasing utility charges including gas, electricity, and water, have led the garment industry to a decline, while export duties are also a contributing factor in the declining readymade exports.
"Despite the fact that the exports ratio has gone up by 15 percent during July-December 2006-07 against the corresponding period of last fiscal year, the fiscal target is still difficult to be attained in the remaining months," he observed.
Within two months--February and March--the increasing export graph will certainly plunge because the earlier growth occurred during the peak buying season in the West, while the remaining five months of the fiscal year are believed to be the lean period for garment exports, he said.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
