Apparel exports have increased and cotton yarn/fabric exports have slumped! This is what the CITI analysis of Exports of T&A for July 2019 says.
Further on the same, Sanjay K. Jain, Chairman, CITI, said that quick estimates of Exports of T&A for the said period show that exports of cotton yarn and fabrics have fallen by 9.98 per cent and 10.54 per cent, respectively, year-on-year (y-o-y) and cumulative basis (see Table 1).
Table 1: CITI Analysis of Exports of T&A for July 2019 (In US $ Million)
|Particulars||July-18||July-19||% Change||Apr’18-July’18||Apr’19-July’19||% Change|
|Cotton yarn/fabrics/made-ups, handloom products, etc.||915.41||824.01||-9.98%||3738.99||3344.86||-10.54%|
|Man-made yarn/fabrics/made-ups etc.||376.39||399.32||6.09%||1616.61||1554.31||-3.85%|
|Jute manufacturing including floor covering||28.90||30.58||5.81%||104.98||109.13||3.95%|
|Handicrafts excl. handmade carpet||150.54||151.68||0.76%||594.53||614||3.27%|
|Textile and apparel||2858.66||2893.66||1.22%||11842.62||11626.78||-1.82%|
Source: DGCI&S and Press Information Bureau
Sanjay added that the change in the trends of apparel and cotton yarn/fabrics is owing to the Rebate of State and Central Taxes and Levies (RoSCTL) scheme that was announced by the Government back in March 2019 for the apparels and made-ups.
RoSCTL scheme was introduced to provide reimbursement of central and state taxes to ensure taxes are not exported along with the products.
Since, yarn and fabric segments were kept out of the same, both the sectors are at present suffering badly and exports are declining, while others for which RoSCTL is granted have shown growth.
It is pertinent to note that some categories like cotton yarn have seen a y-o-y fall of 35 per cent in exports in the first quarter of the financial year, while in June only, it was at a staggering 50 per cent low.
The CITI Chairman has urged the Hon’ble Prime Minister of India, Shri Narendra Modi Ji and the Government of India to extend the benefits of currently announced RoSCTL to the yarn and fabric segments as well.
He said this will help the textile industry increase its export competitiveness in the international markets.