Apparel exports continued its falling streak in dollar terms in October. Exports in October were to the tune of $907 million against $914 million in October 2011, a fall of 0.75%. However, in rupee terms, exports rose 6.83% in October 2012 against the same period last year from R4,583 crore to R4,810 crore, said A Sakthivel, the chairman of Apparel Export Promotion Council (AEPC).
Export in dollar terms for first seven months of the current financial year, too, witnessed a fall of 9.1% over the same period of last financial year from $7.848 billion to $7.133 billion. However, in rupee terms exports rose 7.98% to R38,826 crore compared with R35,956 crore in the first seven months of last financial year, Sakthivel pointed out. For FY12, exports in dollar terms rose 17.9% to $13.699 billion.
Commenting on the decline in the dollar term, Sakthivel said, Buyers are not putting more orders due to turbulence in global economy, specially in Western Europe, the US and Canada. Moreover, there is a stiff competition from Vietnam and Bangladesh in the US market from Turkey in the EU market. Though, there are news that China is losing out in these markets. We need to focus to grab the market share lost from China. Moreover, increasing wage rates, hike in oil prices and inputs are other causes of worry as they are dent on exporters profit.
On the apparel imports of the US, the AEPC chairman said: The US witnessed decline of 2.07% in January-September 2012 from the corresponding period of previous year and amounted to $59 billion dollars. For the same period, the US apparel imports, from India, fell 11% and reached to $2.420 billion in January-September 2012 against $2.727 billion in the same period of 2011.
The US imports saw decline from all major suppliers in January-September 2012 period over the corresponding period of last year except for Vietnam, he said. In September 2012, India reacheed the eigth position, overtaken by Honduras and Cambodia that exported $238 million and $234-million apparels, respectively, to the US in September 2012 as against India's $207 million, a decline of 16.57% over the same month of previous year, he added.
According to him, EUs apparel imports accounted for $64.3 billion for the January-September 2012 period, with a decline of 14% over the same period of previous year. Indias exports to EU for the same the period in 2012 amounted to