India's cotton exports dipped 21 per cent for the ninth month straight in August at $26.80 billion ($21.26 billion). In August, the number dropped to $863 million (Rs 5,696 crores), which is seven per cent against, $932 million Rs 6,151 crores) in the same period in 2014.

In this financial year, exports in the last five months were down by two percent at $4.24 billion (Rs 27,984 crores) against $4.34 billion (Rs 28,644 crores) in the same period in 2014. For this fiscal, the government has set an export target of $13.67 billion. A sharp decline of the rupee against dollar has hit textile exports from the country.

R K Dalmia, Chairman of the Cotton Textiles Export Promotion Council, called for immediate government intervention and said that the trend is a matter of deep concern and the industry, despite being competitive in the market, is compelled to bear the brunt.

Besides, Pakistan, Bangladesh, South Korea, Turkey, Vietnam, and Cambodia, which are competing are given preferential access in major countries that import, including the European Union. Indian textiles in important markets such as China and Canada are faced with discriminatory import, which affects the prospects of India, Dalmia added.

To reduce these discriminatory duties, Texprocil urged the government to initiate dialogue with China, Canada and Turkey. Dalmia also said that the free trade agreement with the EU, Australia and Canada should be fast-tracked by the government to eliminate trade barriers and gain market access to these leading countries. Moreover, he feels that the industry demand to include cotton textiles under the three per cent interest rate subvention scheme and release funds under the Technology Upgradation Fund scheme should be considered by the government.