May 24 2010
INDIA: Revival in Cotton Demand in Overseas Markets
With the recovery of demand in Western marketplaces, India's textile exports might increase up to $24 billion in 2010-11 from an anticipated $20 billion in the preceding financial, industry and Government officers have said.
An executive in the Textile Ministry said that in 2009-10, their textiles exports are projected at $20 billion owing to the worldwide economic catastrophe. They anticipate exports to reach $24 billion for the present financial year.
The textile exports are all set to move in tune with the nation's exports on the whole, that have been rising for six months, since November, 2009.
Federation of Indian Export Organizations (FIEO) President, A Sakthivel said that textile exports can touch $24 billion if the Government widens help to the industry, which is experiencing difficulties.
There has been a sharp increase in cotton costs that went up by over 20% in the last six months, leading to larger fabric prices.
Sakthivel said, "The target can be met provided the Government continues some regulations on cotton and cotton yarn exports".
The Government has brought cotton exports under the controlled category, with foreign country shipments dependent on licensing.
Exporters said that US and European markets that make up for 30-35% of textile exports from India, have seen resurgence in demand across diverse segments.
Source: Stock Watch
