Woven fabric export declines in October as liquidity crunch hit exporters
Woven fabric shipments could not sustain the sharp recovery of September as it hit a three-month low in October. Volumes declined 13% to 332 million sq mtrs worth US$276 million or INR1,170 crore, the levels seen in July 2015, the first month of new tax regime (GST). Thus, cumulative export in the first seven months of 2017-18, was 2,450 million sq mtr, down 3.6% compared with same period a year ago. In terms of value, woven fabric export was worth US$1,990 million or INR12,680 crore. Exporters were reportedly struggling with a liquidity crunch because of delayed GST refunds, leading to the highest overall trade deficit in 35 months.
In O
ctober, 143 countries imported woven fabrics from India, with Bangladesh leading, followed by Sri Lanka and UAE. The three together accounted for 34% of total woven fabrics ex-port during the month. During the month no shipment was recorded to 11 countries who had imported last year. However, they were replaced by 17 countries which imported fabric worth US$2.40 million this October.
Nepal, Chad, Reunion, Afghanistan and Romania were the fastest growing markets for woven fabrics, and accounted for 3.75% of total export value in October.
About 56% of woven fabrics exported were made of 100% cotton worth US$154 million (INR985 crore) with volumes at 188 million sq mtr. The average unit price realization was at US$0.82 a sq mtr, about US cents 5 less than a year ago.
Plain fabric exports, accounting for 62% of all types of woven fabrics exported in October 2017, declined 26% in volume on year on year comparison. Shipment totaled 228 million sq mtr worth US$170 million. Bangladesh, United Arab Emirates, and Sri Lanka were the top markets for plain fabrics.
Denim, the second largest woven fabric exported in October maintain a healthy trend, in-creasing by 18% year on year in volume and 24% in value at US$33 million. They were mainly imported by Bangladesh with Guatemala Sri Lanka following at a distant. Denim exports to these markets were worth US$24 million.
Shirting/suiting volumes increased sharply but values realization was down. Sarees export were hit significantly, falling over 40% year on year this October.
A sharp rise in export of furnishing fabric continued into October with USA and UK dominating markets during October.
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