T-shirts have been the top apparel product category for Indian exporters; however, statistics show FOB prices are consistently reducing – making it a challenging product for factories amidst stiff global competition.
According to an analysis done by team Apparel Resources, FOB prices of T-shirts shipped from India between 2017 to 2024 have drastically reduced by 15.71 per cent.
In 2017, India exported 982.52 million pieces of T-shirts generating US $ 2.71 billion worth of revenues. FOB prices were US $ 2.75 in 2017, whereas, as per the latest data from January to October ’24, the same has shrunk to US $ 2.32 as T-shirts shipment from India amounted US $ 1.92 billion while quantities exported were 827.73 million pieces with two months still to go in the calendar year.
Markedly, even the Covid-hit year 2020 earned better FOB prices for Indian T-shirt exporters when per unit price was valued at US $ 2.57.
Reducing FOB prices is a definite concern for the factories since the cost of manufacturing has jumped significantly in the last seven years. It’s worth noting here that cotton prices alone have surged by 50 per cent over a two-year period, leading many apparel manufacturers to raise their prices by 15-20 per cent to offset these higher input costs.
Additionally, the manufacturing sector has recently faced challenges from inflation. Even in November 2024, India’s manufacturing growth decelerated due to high inflationary pressures, with input costs rising at a pace not seen in over 11 years. Therefore, the cost of T-shirt manufacturing is further expected to increase amidst this.
