Cotton textile exports drop

Cotton textile exports have declined by 24.5% during April-July 2019. What is worrying is that according to the provisional data for the first three weeks of August 2019, there has been a 25% drop in exports on a month on month basis. 

“A commodity wise analysis of the data shows that while garment and made-up exports have shown a positive growth, exports of cotton yarn/fabrics are showing a declining trend. A sharp and precipitous decline especially of cotton yarn during the last four months by about 35 per cent has led to a crisis situation in the spinning industry. In fact, the monthly exports of cotton yarn are at a 5 year low of 59-60 million kgs. Exports to major markets like China have declined by 50 per cent and Bangladesh by 38 per cent and Korea by 45 per cent,” stated Dr K V Srinivasan, Chairman, Cotton Textiles Export Promotion Council (TEXPROCIL). The positive trend in garment exports has been on account of the extension of the ROSCTL which rebates all types of State and Central taxes.