The latest export numbers provide a sigh of relief. During October 2014, aggregate textile exports registered a growth of 6.51 percent on year-on-year basis. Here, the growth in value added segment deserves some brownie points.
In the value added segment, readymade garments, knitwear and bed wear representing nearly 48 percent of total textile exports remained the primary driver of boosting exports during the month. Rising export demand in these categories is a manifestation of our apparel industry’s mounting fame in international markets particularly in the case of readymade garments whose exports soared by 28 percent year-on-year in October 2014.
However, during 4MFY15, textile exports dropped by 1.34 percent year-on-year against the backdrop of muted exports in the preceding months. In this regard, dwindling exports of yarn and cotton are to be blamed. Consequently, the share of yarn and cotton has gone downwards with the contribution of knitwear, readymade garments and art, silk and synthetic textiles inching up a tad.
According to a research note by Optimist Capital, yarn spread has stayed flat on month-on-basis owing to a slowdown in yarn demand from China. Cotton prices, on the other hand, present a bleak outlook owing to the amendments in cotton policy of China and the upsurge
in global production estimates.
Be that as it may, being the mainstay of country’s economy, an unwavering power supply to the textile sector is critical. One hopes that the ongoing talks on restoration of power supply scores good for the fate of this sector.
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