Fabric exports too down in January

Woven fabric exports too were down sharply in January after previous two months of expansion. It was, however, higher than the levels two years ago. While spun yarn exports were down during the month, the fall in fabric export implies that the overall textile sector has been sluggish in January. Volumes fell 13% to 391 million sq mtrs worth US$29 million or INR1,840 crore.  Thus, cumulative export in the first 10 months of 2017-18, was 3,584 million sq mtr, down 1.7% compared with same period a year ago. In terms of value, woven fabric export was worth US$2,804 million or INR17,811 crore.

The Markets

During the month, 137 countries imported woven fabrics from India, led by Bangladesh and fol-lowed by Sri Lanka and UAE. The three together accounted for 32% of total woven fabric shipment during the month. During the month only 12 countries did not import any fabric as in previous year. However, they were replaced by 16 other countries which imported fabric worth US$1.8 million this January.

Fabric Type

Plain fabric exports accounted for 63% of all types of woven fabrics exported in January 2018, down 15% in volume year on year with shipment totaling 301 million sq mtr worth US$184 mil-lion. Bangladesh, Sri Lanka and United Arab Emirates were the top markets for plain fabrics. Denim, the second largest woven fabric exported in January, saw volumes increase by 8% year on year in value rising 5% to US$31 million. They were mainly imported by Bangladesh with Egypt and Colombia following at a distant. Denim exports to Bangladesh alone was worth US$14 million. Furnishing fabric continued into march ahead in January with UK on the top followed by USA and Saudi Arabia.

To Blame

Exporters had complained that the imposition of integrated goods and services tax (GST) and delays in re-fund of input tax credits were hurting overseas shipments, prompting the GST Council to continue two pre-GST era schemes that allow duty-free sourcing of materials for export production until March 2018. Ex-porters insist duty refunds under GST have been tardy.

Source: Textile Beacon’s Woven Fabric Export Statistics