Cotton textile exports dipped seven per cent in August to $863 million (₹5,696 crore) against $932 million (₹6,151 crore) in the same period last year.

Exports in the last five months of this financial year were down two per cent at $4.24 billion (₹27,984 crore) against $4.34 billion (₹28,644 crore) in the same period last year. The government has set an export target of $13.67 billion for this fiscal.

Rupee depreciation

Textile exports from the country were hit by the sharp depreciation of rupee against dollar while the competitive strength of China was boosted by its currency devaluation.

The overall exports from the country were down for the ninth straight month in August by 21 per cent at $26.80 billion ($21.26 billion).

Calling for urgent government intervention, RK Dalmia, Chairman of the Cotton Textiles Export Promotion Council, said the trend is a matter of deep concern and the industry, despite being competitive in the market, is compelled to bear the brunt.

Double whammy

Competing countries such as Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam are given preferential access in major importing countries, including the European Union. On the other hand, discriminatory import duty was levied on Indian textiles in important markets such as China and Canada impacting the prospects of India, he said.

Texprocil urged the government to initiate dialogue with China, Canada and Turkey to reduce discriminatory duties. The government should fast track free trade agreement with the EU, Australia and Canada to remove trade barriers and gain market access to these leading countries, said Dalmia.

Besides, he said, the government should consider the long-standing industry demand to include cotton textiles under the three per cent interest rate subvention scheme and release funds under the Technology Upgradation Fund scheme.

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