Denim fabric export slows down in April as Bangladesh imports lesser

Woven fabric shipment (exports) continued to remain buoyant in April, mainly on low base effect. In April 2017, exports had fallen more than 16% year on year due to demonetisation of high currency notes which hampered small and medium scale units then. Exports were also adversely impacted by the imposition of GST regime in July.

Fabric shipment rose 17% to 379 million sq mtrs (YoY) worth US$297 million or INR1,920 crore in April.  The financial year 2017-18 saw export of 4,360 million sq mtr, up 2% compared with previous year. In terms of value, woven fabric export was worth US$3,435 million or INR21,825 crore in that year.

During April, 134 countries imported woven fabrics from India, topped by Bangladesh and followed by UAE and Sri Lanka. The three together accounted for 30% of total woven fabric shipped during the month. During the month only 12 countries did not import any fabric as last year. However, they were replaced by 9 other countries which imported fabric worth US$0.42 million this April.

Cote D’Ivoire, Croatia, Ethiopia, Nepal and Philippines were the fastest growing markets for woven fabrics, and accounted for close to 2% of total export value in April.

Cotton made fabric continued to dominate export in April accounting for over 51% total export. 100% cotton made fabric was worth US$152 million (INR980 crore) with volumes at 180 million sq mtr. The average unit price realization was at US$0.84 a sq mtr, 2 cents higher than a year ago

Plain fabric exports accounted for 64% of all types of woven fabrics exported in April 2018, up 14% in volume year on year with shipment totaling 291 million sq mtr worth US$190 million. Bangladesh, UAE and Senegal were the top markets for plain fabrics.

Denim fabric was the second largest woven fabric exported in April, with volumes increasing 18% year on year and value up 9.5% to US$29 million. The increase appear slowing down dramatically despite a negative base. In April 2017, denim fabric export had declined 6% in volume and 4% in value. Previous two months had seen tremendous increase in export with value clocking 46% increase in February and 48% in March. April’s only 9.5% increase appear worrisome. Denim fabric was mainly imported by Bangladesh, followed by Egypt and Colombia at a distant in April 2018. Denim exports to Bangladesh alone was worth US$10 million. Export to Bangladesh declined 44% in value worth US$9.6 million as against US$17 million a year ago.

Shirting/suiting volumes surged 33% while lungies and dhoties export fell 4%, after a recovery in previous two months.

Furnishing fabric continued its doubling in April with UK on the top followed by USA and UAE.

http://www.textilebeacon.com/news/bangladesh-indias-major-textile-trading-partner/

Source: Textile Beacon’s Woven Fabric Export Statistics – India report