Chemical exports decline

MUMBAI, Sept 19: Chemical exports during the first quarter of the current fiscal have dropped by 1.5 per cent in dollar terms. From 661...

MUMBAI, Sept 19: Chemical exports during the first quarter of the current fiscal have dropped by 1.5 per cent in dollar terms. From 661.2 million during April-June 1997, exports have dropped to 651 million during the same period this year. However, as a result of depreciation of the Indian currency, exports have registered an uptrend in rupee terms by 12.5 per cent, from Rs 2315 crore to Rs 2604 crore.

Among the worst affected has been the dyes and dye intermediate sector, which till recently was one of the star export performers. Exports of dyes and intermediates have declined by a whopping 16.6 per cent from 147.4 million to 123 million.

A drastic drop of 29.5 per cent in the dye intermediate segment has been the main cause of the poor performance of the sector. Industry sources attribute the drop in the intermediate segment to the south east Asian crisis. Some exporters had to call back their material on account of the buyer refusing to accept due to a currency crisis. Others who managed to sellin these market are having problems recovering their dues. Further Indian exports of intermediates were also competing with European countries and middle east which led to a drop in prices.

Exports performance would have been worse but for a strong performance by the pharmaceuticals, fine chemicals and crude drugs sector. Bulk drugs and finished formulations segment has grown by 7.5 per cent from 281.6 million to 302.7 million. Basic bulk drugs sector has shown a growth of 25 per cent from 108.7 million to 136.2 million mainly on account of growth in exports of drugs which have recently gone off-patent.

Industry sources say that volume growth has been substantial considering the fact that prices of most of bulk drugs, specially antibiotics have been depressed. Pharmaceutical formulation, however, has shown a negative growth of 3.7 per cent from 172.9 million to 166.5 million.

Crude drug exports have increased by 10.8 per cent from 9.3 million to 10.3 million. Exports of psyllium husk haveincreased from 4 million to 4.8 million, while that of other crude drugs has gone up from 3.7 million to 4.4 million. Exports of Senna leaves and pods have declined from 1.6 million to 1.1 million.

Higher prices in the domestic market as well as a poor crop have resulted in exports of castor oil increasing by only 1.9 per cent from 49.5 million to 48.6 million. Exports of castor oil dehydrated, in fact has dropped from 0.6 million to 0.5 million. Exports of castor oil, say traders, is likely to pick up in the coming months. Inorganic, organic and agro chemicals sector has shown a marginal drop of 4.7 per cent from 137 million to 130.5 million. Only the inorganic chemicals has shown a paltry growth from 17.2 million to 17.5 million. Organic chemicals exports on the other hand has declined from 74 million to 72 million.