TEXPROCIL concerned over slowing down of textile exports

Mumbai, Apr 10 (UNI) The Cotton Textiles Export Promotion Council (TEXPROCIL) today urged the Union Government to intervene effectively to ensure that textiles exporters, already burdened by high costs, do not lose their share in the world market on account of low realization in rupee terms.

In a statement, TEXPROCIL chairman Prem Malik expressed deep concern over the slowing down of textile exports to major markets like the USA.

In the case of USA, imports from India for the year ending January 2007, had grown by only five per cent against a growth of 27 per cent for China, 26 per cent for Indonesia, 20 per cent for Bangladesh and 23 per cent for Cambodia.

Attributing this slow down to the sharp appreciation of the Indian Rupee vis-a vis the US dollar, Mr Malik called for urgent steps to rein in the unsually shart appreciation of the rupee witnessed during the last nine months. The rupee, he pointed out, has appreciated from trading at a level of Rs 45.51 against the US dollar in August 2006 to the present level of Rs 42.65 as on April 9, recording an increase of nine per cent over this period.

This increase had direct bearing on export realization, leading to a slowdown in exports. Along with a severe pressure on prices, high interest cost, gowing cost of inputs on account of rising inflation, high transaction costs on account of poor infrastructure, the appreciating rupee was making exports from India highly uncompetitive in world markets, Mr Malik said.

UNI