Cotton textile exports during January-May was estimated at $1.4 billion (Rs 5,963.65 crore) against $1.45 billion (Rs 5,778.12 crore) during the same period a year ago. A notable feature of the export scenario was the turnaround in cotton yarn exports during the period.

During the period, cotton fabrics shipment was $428.14 million (Rs 1,822.60 crore) against $493.58 million (Rs 1,955.54 crore), a decline of 13.26 per cent. Millmade fabrics exports dipped to 239.59 million sq metres (msm) valued at Rs 777.36 crore against 277.77 msm shipped during same period last year at Rs 835.73 crore.

Powerloom fabrics exports was down to 603.69 msm worth Rs 934.78 crore against 633.80 msm at Rs 1.005.87 a year ago. Knitted fabrics exports increased in terms of volume to 43.35 msm from 39.73 msm butthe value declined to Rs 110.46 crore from Rs 113.93 crore.

Cotton yarn exports during April-May witnessed a nearly one per cent growth with shipments increasing to 212.42 million kg valued at $597.87 million (Rs 2,545.14 crore) against 186.20 million kg at $592.19 million (Rs 2,346.26 crore).

The yarn export growth rate in rupee terms was 8.48 per cent and in volume terms, it was up by 14.08 per cent. Sewing thread exports registered an over 30 per cent decrease in volume, dollar and rupee terms. It was down to 0.80 million kg valued at $6,80,000 (Rs 2.90 crore) against 0.13 million kg worth $1.06 million (Rs 4.18 crore) a year ago.

Cotton made ups exports rate was also up by 0.71 per cent in dollar terms to 374.12 million dollars (Rs 1,593 crore) against $371.56 million (Rs 1,472 crore) during the period.

While millmade cotton madeups registered a 47 per cent rise in exports, powerloom madeups shipments declined by five per cent and that of knitwear by 44.45 per cent.

The Asian region, excludingBangladesh accounted for 33.77 per cent of total cotton textile exports from the country, while Bangladesh made up 7.85 per cent.

Share of exports to European Union was 23.24 per cent and to the US it was 14.18 per cent. Meanwhile the actual shipment of exports of cotton bales was reported at 0.67 lakh bales valued at Rs.5,637.53 lakh by June end, as against the export quota of six lakh bales during 1998-99, according to official sources.

Of the 1.40 lakh bales released for the period, export of Bengal Deshi was reported at 45,257 bales valued at Rs.3,402.52 lakh, while shipment of staple cotton was 12,856 bales out of 3.60 lakh bales, worth Rs.1,345.01 lakh, as on June 28, according to South India Cotton Association (SICA) at Coimbatore, in Tamil Nadu.

Out of one lakh bales released for export of spillover shipment of 1997-98 staple cotton, the reported shipment till June 28, was 8,589 bales worth Rs.890 lakh, it said, quoting statistics released by the office of textile commissioner.

Cotton lintprices continued to remain steady and quiet in the last fortnight of June, according to the SICA). Offtake from mills slackened as they were not able to function to full capacity due to mounting problems of cash losses and non-movement of yarns, fabrics and finished goods, SICA said in its market report for the period.

In order to keep the contract going, EoUs were meeting their requirements from overseas due to quality and price advantage, it said.

With arrivals reporting almost nil, the prices remained quiet in Punjab, Haryana and Rajasthan during the period. Bengal Deshi was being quoted at Rs.1,350 to Rs.1,480 and J-34 saw ginned was offered at Rs.1,730 to Rs.1,750 per maund spot.

The prices remained steady in Gujarat, with V-797 ruling at Rs.12,500 to Rs 12,700 and Shankar-6 quoting at Rs.18,600 to Rs.20,300 per candy spot. Despite lesser demand, the prices firmed up in Madhya Pradesh, with H-4 quoting at Rs.18,700 to Rs.19,200 per candy spot, the report said.

While lint prices were subdued dueto lack of interest from the mill sector in Andhra Pradesh, it remained steady in Karnataka and Tamil Nadu, SICA said.

Hopes were set on the fast approaching festive season for the demand to pick up, and if the current situation continued, the carryover stock could be much higher than estimated, the report said.