High yarn costs hurt India’s apparel & textile exports

Indian apparel and home textile exports are seeing strong demand, particularly in the US, with readymade garment exports rising 17.3 per cent to $1.1 billion in September. This momentum appears to be sustained in October, with increasing market share in the US and EU, says the Confederation of Indian Textile Industry’s (CITI) secretary general, Chandrima Chatterjee.

As per CRISIL, home textiles, largely dependent on exports, are projected to grow 6-8 per cent this fiscal, driven by resilient US demand and domestic market expansion. However, high cotton and man-made fibre prices are a concern.

Although Indian cotton prices recently dipped from 87 to 83 cents per pound, they still exceed international rates, and industry players anticipate limited further declines due to the high Minimum Support Price (MSP) and 11 per cent import duty.

Higher polyester and viscose costs, up to 25 per cent above Chinese rates, also impact competitiveness, compounded by the Bureau of Indian Standards Quality Control Orders restricting imports. Southern India Mills Association’s (SIMA) secretary general K Selvaraju suggests exempting import duties off-season and relaxing QCO requirements to support export growth in textiles, where overall growth has stagnated despite apparel gains.