Apparel export dips 2.6% to $10.64 bn

The US and Europe,which are recovering from the impact of global recession,together account for 60 per cent of the country’s total garment export.

“There has been a weak recovery in the western markets like the US and Europe,” AEPC Chairman Premal Udani said.

Moreover,the exporters rue that they have been affected due to the rising fabric prices,which have made them uncompetitive in the global market.

High fabric prices have made Indian apparel export uncompetitive,as a result major buyers in the US and European markets are sourcing stuff from countries like China,Vietnam and Bangladesh,he added.

Industry experts said the fabric prices have jumped up to 50 per cent in the past six months,mainly due to rising cotton prices,leading to cost escalations.

“Garment exporters cannot pass on these increases to their buyers,” Udani said.

The council,however,said the government should take more steps to discourage the export of raw materials such as cotton and yarn to help the domestic industry.

“At a time when domestic demand for fabrics and yarns is booming,free exports of basic raw materials like cotton and cotton yarn could take away millions of jobs from the country,” he said.

In April,the government had withdrawn four per cent incentive on cotton yarn exports aimed at cooling its prices in the domestic market.

The country’s apparel export started declining since October 2008.

The garment industry provides employment to about seven million people out of which almost half of them are engaged in the export sector.