The hardening of rupee against dollar has adversely hit the wool and wool-blended products.
The exports from the sector, which witnessed a growth rate of 21 % and 8 % during 2004-05 and 2005-06 respectively, has seen a decline of 0.13 % for 2006-07 due to rupee appreciation, said an official of the Wool and Woollens Export Promotion Council (WWEPC). This clearly shows that the country has a negligible share of these products in the international market, he added.
The council under the administrative control of ministry of textiles too has not achieved the export target of $ 500 million fixed by the government for the year 2006-07.
The ministry of textiles has set an ambitious target of $ 635 million for 2007-08, an increase of 27% over the target of the previous year. The chairman of the WWEPC, Ashok Jaidka fears that the country’s exports till June 2007 has registered a growth of only 14 per cent which further strengthens the apprehension that if the situation continues, the export growth may come in single digit during the current fiscal and even negative next year.
According to industry sources, because of the uncertainty over the exchange rate, Indian garment exporters have not been firming up new contracts which is not a good indicators in the months to come.
?To remain competitive in the global market, woolen industry has to give greater focus on latest design, finishing and modern techonology. However, the industry’s response towards TUF scheme has so far not been very encouraging? the industry sources said.