India’s knitwear exports have been falling month on month since October 2017. For the second half of 2017-18 the decline in exports was 21 per cent. And the negative trend in export growth is continuing this fiscal.
The sector went through a challenging business environment following the implementation of GST. But now yarn prices threaten to derail the industry. This would affect the sector and also have a boomerang effect on textile mills.
Cotton yarn prices have increased by Rs 20 a kg. The impact of price increase has made textile mills increase yarn prices which ultimately affects downstream value added sectors like weaving, knitting, garmenting and made ups, particularly value added exporters, as they can not hike the price which was fixed more than three to five months back.
However, a turnaround seems as the sector is now booking orders and business has started to look up and is poised to bring back the industry from the brink after a prolonged one year lull.
Knitwear exporters want the Cotton Corporation of India to ensure the availability of enough supplies of the desired quality to protect the interests of farmers, the textile industry and also to generate employment.