The Hindu Business Line : Slowdown in apparel exports to US `worrying'

APPAREL exports to the US and Canada have slowed down drastically in the last few months — a worrying trend, according to Mr Amit Goyal, President, Confederation of Indian Exporters (CIAe).

Recent figures reveal that apparel exports to the US fell 23.63 per cent to Rs 868 crore in January 2004 from Rs 1,036 crore in January 2003. In February 2004, it fell 19.50 per cent to Rs 845 crore from Rs 1,050 crore in the previous corresponding period.

Similarly, exports to Canada fell 21 per cent to Rs 85 crore (Rs 107 crore) in January 2004 and 25 per cent in February 2004 to Rs 83 crore (Rs 110 crore).

However, apparel exports to the European Union rose 25.31 per cent to Rs 1,848 crore in January 2004 over Rs 1,380 crore in January 2003. For February 2004, it was higher by 22 per cent at Rs 1,279 crore over Rs 1,050 crore previously.

According to the CIAe, the data is significant as exports to the EU have been increasing steadily while exports to the US and Canada are declining. Some of the reasons are the weakening of the dollar and a large number of bulk orders being shifted to countries such as Bangladesh, Sri Lanka, Pakistan and China. According to a press release, the price difference between the Indian manufacturer and that of neighbouring countries in some commodities was almost 20 per cent.

Indian cotton/yarns are competitive and were being exported the world over. But, Mr Goyal said, the main problem lay in the conversion/processing industry. The processing charges were high in India, which, in turn, hurt Indian exporters. Today, exporters were not being able to source international standard fabric at competitive prices from Indian mills, and this was forcing more exporters to look towards imports from China and other countries for their fabric requirements.

He added that there was a widening gap between the number of spinning mills coming up and the processing houses. If this gap was not shortened by increased investments in the processing industry, the Indian apparel exporter would face difficult times in future.

More Stories on : Readymade Garments | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
A `great year' for Customs wing

Pharma cos in a spot as Web sites hawk drugs

AP taxmen log on to VAT network for ecompact-2020

Krishna water for twin cities

`Man-made aquifers good enough to store rainwater'

Northern Coalfields production up 4 pc

TRAI paper on FM radio seeks views on contentious issues

Tractor makers seek Govt help to ease spiralling input costs

CII sets up voters' helpline

Slowdown in apparel exports to US `worrying'

Arabal 2004 meet to focus on growth plan

Delhi exporters plea to restore 80HHC benefits

SEBI amends norms on venture capital funds

Music industry battles hard to combat piracy problem