Rising crude prices push down synthetic & rayon textile exports
07 Dec '05
2 min read
Rising crude prices standing currently at about $57 per barrel, and has led to a cut in production and exports of synthetic and rayon textiles.
Price hike affected synthetic and rayon textile exports this September, which saw a drop of 8.48 percent in terms of rupee and 3.89 percent in dollar terms, informed an official of Synthetic and Rayon Textiles Export Promotion Council (SRTEPC). This decline is compared againts the figures of the corresponding month during 2004.
Exports of polyester filament fabrics dropped 26 percent to Rs 175.57 crore, in September.
Blended fabrics like polyester viscose and polyester cotton registered 9 percent and 20 percent decline respectively.
Moreover, September exports of viscose spun fabrics dipped sharply by 92 percent, this year.
Indian textile industry have approximate market size worth Rs 1,30,000 crore, has been impacted by soaring crude prices and stiff competition from China.
Since China has cost advantage over India, only industry-friendly government policies akin to those of China, can help Indian textile companies compete globally, commented an industry expert.
He also added that end product prices remained unchanged throughout the year affecting profitability in a big way.
Besides, exporters are hurt by the decline in the duty entitlement passbook rates, through which government reimburses local duties and cess benefits such as excise duty and mandatory cess paid by exporters.
A broad-based scheme, under consideration is on cards for which details are awaited. Exporters hope results coming for October and the following months will be better as experts hint at drop in crude oil prices.
marketing@alchempro.com
