Fall in textile export to US makes govt jittery

Concerned over falling textile exports to the US in the recent months, the government has convened a meeting of industry representatives on January 24 to discuss ways out to improve the situation.

During October-November, the country's textile exports to the US declined by 4.8 per cent to $404 million as against $424.3 million in the corresponding period last year.

However, the total textile exports to the US in the 11-month period of CY06 witnessed an increase of 8 per cent to $5118.4 million from $4739.4 million in the corresponding period last year.

Terming the fall as a temporary trend, Textile Commissioner J N Singh said: "At present, the country's textile sector has shifted its focus on the domestic market, which witnessed a growth of 10-12 per cent this year as against 3-4 per cent last year."

Notably, total US textile imports slumped by 14.6 per cent to $8013.3 million from $9378.3 million in the October-November period in 2006. However, US imports marginally went up by 3.5 per cent to $91,737.5 million from $88,663.4 million in the 11-month period of CY06.

Quantitative restrictions on Chinese textile also resulted in 21.3 per cent ($700.4 million) decline in exports to the US during the October-November period last year. Despite such a drastic decline, the country maintained 13.2 per cent exports growth to the US. This, according to industry veterans, is because of exports through other countries including Bangladesh.

"China is possibly selling its fabric to Bangladesh and Indonesia, and these countries, in turn, export it to the US after value additions," an industry source said.

Apart from Bangladesh, Indonesia, Pakistan, Vietnam and Cambodia have made significant gains in textile exports to the US in the two months.

India's exports to non-European Union countries declined to 11.02 per cent during the January-October period in 2006 against 15.4 per cent in the same period in 2005. But, exports from Bangladesh, Indonesia, Vietnam and Cambodia in the same region recorded a phenomenal growth of 34.22 per cent, 21.27 per cent, 51.69 per cent and 19.67 per cent respectively.

While Chinese export grew by 8.5 per cent.

(Click here to see table)