Mumbai, Feb 22 (PTI) The Government''s initiative tocap export of cotton yarn to bring down its domestic priceshas resulted in a marginal increase in the export of apparelsto USD 2,438 million in Q3 FY 11 as compared to USD 2,398million in the year-ago period.
"The Indian apparel sector, which has been reelingunder pressure in the recent past primarily due to risingcotton yarn prices, witnessed a positive beginning in December2010. This is a result of the recent intervention by theGovernment to cap exports of cotton yarn," Apparel ExportPromotion Council (AEPC) Chairman Premal Udani said in arelease here today.
To curb increasing prices of yarn in the domesticmarket, the Government has capped cotton yarn export for FY 11to 720-million-kilogram for the current fiscal.
According to AEPC statistics, export for December roseby 40 per cent, touching the USD 1-billion mark, from USD 7.10million posted in the previous month (November 2010).
"An important reason for this increase has been thegrowth posted in AEPC''s largest exporting partner country, theUS," Udani said.
Apparel export to the US registered a growth of 10 percent during the period January-November 2010 at USD 2,903million as against USD 2,636.90 million in the correspondingperiod of 2009, the release said.
"We are optimistic about reaching an export figure ofUSD 11 billion for the current financial year. For the nextfiscal, AEPC forecasts about 10 per cent growth, subject toraw material stability," he said.