Posts Tagged ‘Indian exporters’

India’s Garment Exports Dropped 17%

India”s apparel exports fell 17 % in October, 2009 to $603 million as compared to October, 2008. Due to the uncompetitive pricing of fabrics in the domestic market the country lost its market share to countries like China, Vietnam and Bangladesh.

The rising cotton prices remain a concern for the exporters as it had raised the cost of yarn, thus making the domestic garments costlier. Due to the increase in price, the overseas buyers are placing orders with China, Vietnam, Indonesia and Cambodia, which are selling garments at lower rates as compared to India.

Mr. Rakesh Vaid, Apparel Exports Promotion Council (AEPC) Chairman, said, in spite of the demand from the US and EU are reviving, the Indian is losing its share to units in neighbouring nations as they have large-scale production.

Mr. Vaid said, the duty drawback rates, which tends to control the Customs duty, central excise duty and service tax on items for export, given to Chinese apparel exporters, have been revised five times in the last some months from 11 % to 17 % on value of Freight on Board (FOB), while the Indian exporters get only 8.8 % rebate.

During Jan-Sept, 2009, the exports” share of Indian apparel declined by 6.46 % to $2.27 bn At US, as compared to $3.07 bn in the same period last year. AEPC said, during Jan-Sept, 2009, China”s exports rose by 1.95 % to $17.23 bn, Bangladesh by 2.35 % to $2.66 bn.

According to industry experts, many garment exporters has stopped its production or cancel the orders due to the rise in prices of premium quality cotton, which was trading at Rs 20/metre in July 09, has risen to 55 % at Rs 31 /meter.

AEPC said “Unless we get cotton yarn at competitive rates, we will not be able to compete with China, Bangladesh, Sri Lanka and Vietnam.”

To promote outward shipments of value-added items, the exporters in November, had asked the government to either ban cotton exports or put a sealing of 400,000 bales/month on exports of natural fibre.

Last week, the government said, it had no plans to ban the export of cotton, as surplus stocks needed to be offloaded overseas. Textiles Minister, Mr. Dayanidhi Maran had said during this season the total availability of cotton stock is 33 million bales which is 4-5 mn bales more than the expected production of 29 mn bales. During 2008-09, peak export of cotton was 8.5 mn bales.

World Trade to Slip by 11%; More Trouble for Exporters :(

World trade down

The International trade in 2009 is estimated to decline by 11 per cent in real terms and by more than 20 per cent in current dollars (terms), United Nations Conference on Trade and Development (UNCTAD) report said on Monday.

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This seems to a bad news for the Indian exporters due to the worsening of the global merchandise outlook.

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There was a fall in demand from major developed countries like US and European Union due to the global recession.

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The exports of India stood in the negative zone for the tenth month in a row since October 2008.

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The exports during April-July period of this year, dropped by over 31 per cent.

However, earlier, the World Trade Organisation had estimated the global trade to be slipping by nine per cent in 2009.

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World trade slowed down in 2007 and has been shrinking at a fast pace since November 2008, in both volume as well as value terms.

The trade volume decelerated first in the United States and other developed countries, the report said.

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On the top of this, the report also stated that as the crisis is global, the reliance on exports offers no easy way out, since trade is expected to fell by about 11 per cent in real terms and any expansion of new trade requires a recovery of consumption and investment somewhere in the world.

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