Basic textiles export fails to maintain uptrend in August

Basic textiles export failed to maintain the uptrend seen in June and July. They fell in line with total merchandise exports which were down 12.7% worth US$22.70 billion, as compared to August 2019. In INR terms, exports were INR1,695 billion, registering a fall of 8.3%. Among major textile commodities which recorded year on year export growth were Carpet (15.5%), and jute mfg. including floor covering (9.2%). Textile commodities which declined were man-made yarn/fabs/made-ups etc. (-24%), RMG of all textiles (-14%), handicrafts excl. handmade carpet (-5.2%), and cotton yarn/fabs/made-ups, handloom products etc. (-0.4%).

Imports on the other hand in August 2020 were US$29.47 billion (INR2,201 billion), down 26% in US$ terms and 22% in INR over August 2019 values. Thus, trade balance in merchandised goods was estimated at a deficit of US$6.77 billion. A surplus recorded in July 2020 appears to be an aberration since import of petroleum products was down in that month, and that too they were bought at a much lower international prices.

Basic textiles export comprising fibres, spun and filament yarns shipment was up 2.9% in August 2020, YoY in terms of US$ at US$483 million or INR3,577 crore, accounting for about 2.9% of total merchandise exported from India during the month. The increase was mainly led by sharp increase in fibre export, particularly cotton and at a very moderate pace by spun yarns.

Spun yarns shipment was 19% higher in terms of volume and mere 2.5% up in terms of US$. All kinds of filament yarns shipment was down 41% in similar comparison. Fibre shipment (including cotton) surged 68% year on year, with cotton export posting three-fold increase in August this year.

On a cumulative basis, basic textiles export were still down 17% in the first five months of 2020-21, compared same period a year ago. The first two months were under strict lockdown and production suffered as a result. Globally, most markets were also under restrictions, hence orders were either cancelled or postponed.

Source: Fibre To Yarn Export Statistics – India report