Texprocil sees cotton yarn exports down 6-7% this year

Ajit Kumar V in Coimbatore

Cotton yarn exports from India will fall by 6 to 7 per cent in 2001 compared to the previous year, the Cotton Textile Export Promotion Council (Texprocil) has indicated.

According to the Council, mounting global cotton yarn stocks and steeply depreciated currencies of competing countries hit exports for the first half of 2001 and the trend is unlikely to change in the second half too. Moreover, there will be a sharp erosion in price realisations following significant drops in cotton prices.

Cotton yarn exports for the January-June 2001 period, according to the Council’s data, is 248.17 million kg valued at Rs 3,195.82 crore against 288.79 million kg valued at Rs 3,475.67 crore. Exports for 2000, against which the 6-7 per cent drop is anticipated, was 532.11 million kg valued at Rs 6,590.26 crore. This could be the second consecutive year India witnesses a slide in cotton yarn exports after it hit a record high in 1999.

While analysing cotton yarn exports from the country at the yarn committee meeting of the Council here on Tuesday, it was stated that reports of cancellation/decrease of export sales of cotton fabrics and garments in developed countries has resulted in accumulating yarn stocks. Pakistan and Indonesia, the two competing countries, are offering lower prices in most markets following their respective currency depreciations. Exports of cotton yarn to major markets like Korea, EU, Mauritius, Malaysia, Israel and Egypt have gone down during the first half of 2001. There is drop of 24 per cent in terms of quantity and 19 per cent in terms of value in the case of exports by EOUs in the country. Exports to the US and most EU markets are witnessing significant drops. The US market has seen a drop of 32.57 per cent in quantity and 29.03 per cent in value.