Textile exports to US shoot up in post-quota era

In fact, in the first two months of 2005, exports of both textiles and garments went up by 18.55 per cent. While garment exports went up by 25.51 per cent, textiles went up by 14.98 per cent. Most of these products used to come under the MFA earlier, Nair added.

The figures for the first three months of 2005 show the same trend. While yarn exports to US shot up by 41 per cent during this period, exports of mens’ T-shirts went up by 15 per cent and that of ladies T-shirts went up by 20 per cent.

The same trend was also observed by another association, the Cotton Textiles Export Promotion Council (Texprocil). Stating that exports to the US on those products under MFA have shot up, Siddharth Rajagopal, executive director, Texprocil said in the first two months, both apparel and non apparel exports to US have increased from $293.6 million to $327.48 million. While apparel went up by 13 per cent, non apparel went up by 5.8 per cent.

However in an apparent paradox, data compiled by the Directorate-General of Commercial Intelligence and Statistics have shown that total textile exports in the month of January fell by 7.6 per cent.

Explaining the paradox, experts said since 50 per cent of exports were under quota previously while 50 per cent were not, it may be possible that exports of those products not under quota might have gone down. If that is so, one cannot draw any co-relation with phasing out of quota and the reported dip in exports. Once, DGFT figures are out, the correct postion will come out in the open, experts said.

Rajagopal was of the view that January to January comparison cannot give a correct perspective. “January 2005 was the period when the exporters were testing the waters in the post-quota regime. January to January comparison may not be appropriate”, he added.