Woven fabric exports to gain momentum as decline fades in August

The decline in woven fabric shipments narrowed down to 2.4 per cent in terms of volume in August, and remained positive in value term. Shipments aggregated 382 million sq mtr during the month valued at US$328 million or INR2,070 crore. During the first five months of 2017-18, total woven fabric exports were at 1,720 million sq mtr, down 5 per cent year on year.

In August, 141 countries imported woven fabrics from India, with Bangladesh being the largest importer, followed by UAE and Sri Lanka. The three together accounted for 28 per cent of total woven fabrics export during the month. During the month, 10 countries did not import any fabric from India as they did last year. However, they were replaced by 23 countries which imported fabric worth US$3 million this August.

Afghanistan, Uzbekistan, Cote D’Ivoire, Nepal and Hungary were the fastest growing markets for woven fabrics, and accounted for 5 per cent of total value exported in August.

Woven fabrics made of 100% cotton accounted for 49 per cent of all fabrics exported, worth US$160 million (INR1,010 crore) with volumes at 172 million sq mtr. The average unit price realisation was at US$0.93 a sq mtr, about 10 cents more than a year ago.

Plain fabrics accounted for 65 per cent of all kinds of woven fabrics exported in August 2017, but were down 5 per cent in volume on year on year comparison. Shipment totaled 297 million sq mtr values US$214 million. United Arab Emirates, Bangladesh, and Afghanistan were the top markets for plain fabrics.

Denim was the second largest woven fabric exported in August (US$35 million), posting an in-crease of 22 per cent in volume year on year. They were mainly imported by Bangladesh, Egypt, Turkey, Guatemala and Lesotho. Denim exports to these markets were worth US$24 million.

Shirting/suiting and sarees were the other top fabrics exported from India in August this year.

About 48 per cent of all woven fabrics exported were of medium weight (>136 <281 GSM) worth US$1598 million while light weight (<136 GSM) were valued at US$129 million (39 per cent). Medium weight fabrics were mainly exported to Bangladesh, USA and United Arab Emirates, while light weight fabrics were exported mainly UAE, Afghanistan and Sri Lanka.

There has been significant rise in export of woven fabrics to Afghanistan over than past one year. In August 2016, the Synthetic and Rayon Textile Export Promotion Council and Southern Gujarat Chamber of Commerce and Industry jointly signed a MoU with a delegation from Afghanistan for boosting export of polyester fabrics and made-ups, especially from MMF hub in Surat. The MoU was signed at ‘Source India 2016’ exhibition held in Surat last year. Afghanistan was defined as a fast-emerging market of textiles. Indian textile exporters had negligible direct trade with Afghanistan, and were selling to this market through third countries.

During the first five months of 2017-18 woven fabric export was valued at US$44 million, including fabrics worth US$26 million made of manmade filaments.