Woven fabric export continue to surge in December

Woven fabric export continued to rise in December following the sharp recovery in November. It was also higher than the levels two years ago. While spun yarn exports were slug-gish during the month, the rise in fabric export implies the potential for export of value added products. Volumes rose 10% to 397 million sq mtrs worth US$302 million or INR1,875 crore.  Thus, cumulative export in the first nine months of 2017-18, was 3,190 million sq mtr, a tad down 0.1% compared with same period a year ago. In terms of value, woven fabric export was worth US$2,510 million or INR15,970 crore.

During December, 142 countries imported woven fabrics from India, led by Bangladesh and followed by Sri Lanka and UAE. The three together accounted for 33% of total woven fabric shipment during the month. Only 7 countries did not import any fabric as in previous year. However, they were replaced by 16 countries which imported fabric worth US$1 million this December.

Afghanistan, Nepal and Paraguay were the fastest growing large markets for woven fabrics, and accounted for 3% of total export value in December.

Close to 55% of woven fabrics exported were made of 100% cotton worth US$165 million (INR1,020 crore) with volumes at 190 million sq mtr. The average unit price realization was at US$0.87 a sq mtr, about US cents 5 more than a year ago.

Plain fabric exports accounted for 65% of all types of woven fabrics exported in December 2017, up 6% in volume year on year with shipment totaling 312 million sq mtr worth US$198 mil-lion. Bangladesh, United Arab Emirates, and Sri Lanka were the top markets for plain fabrics.

Denim was the second largest woven fabric exported in December saw volumes increase by a sharp 30% year on year in value jumping 31% to US$31 million. They were mainly imported by Bangladesh with Egypt and Sri Lanka following at a distant. Denim exports to Bangladesh alone was worth US$19 million.

Shirting/suiting volumes increased 4% while lungies and dhoties export jumped significantly, after falling in previous two months. Furnishing fabric continued into gallop in December with UK on the top followed by USA and Sri Lanka.

Heavy weight fabric (>136 <281 GSM) exports posted the fastest increase in December although the volumes were much lower than light and medium weight fabrics. Medium weight (>136 <281 GSM) remained the most preferred woven fabrics for exports worth US$164 million while light weight (<136 GSM) fabrics were valued at US$100 million (33%). Medium weight fabrics were mainly exported to Bangladesh, Sri Lanka and UAE, while light weight fabrics were exported mainly UAE, Sri Lanka and Bangladesh. Heavy weight (>281 GSM) fabrics were mostly exported to Bangladesh, USA and UK in December.