The rise in cotton and yarn prices in the current financial year has had an impact on textile and apparel exports from India. Textile and apparel exports have come down by 10 per cent over the previous year due to rising raw material prices. It is to be known that in the year 2021-22, there was a growth of 41 percent in the textile and apparel export trade from India.
Looking at the recent report by Wazir Textiles, last year where all the top companies like Welspun, Vardhman, Arvind, Tident, KPR Mills, Indo Count, RSWM, Filatex, Nahar SPG and Indorama saw growth in sales. Whereas in the first two months of the current financial year, there has been a decline in sales.
A major reason for the increase in exports in the year 2021-22 is the lack of demand in the US and Europe, the adoption of China plus one policy adopted by various countries. Last year, the pandemic did not even affect factories and unlisted companies also performed well. AEPC Chairman Narendra Goenka said that raw material prices are very high this year. This is the reason why there has been a steady decline in demand.
Looking at the last year sales of major textile companies, Welspun saw a growth of 13 percent, Arvind 65 percent, Vardhman 60 percent and Trident 54 percent in the year 2021-22 as compared to the year 2020-21. The largest contributor to this increase was given by the United States. Which contributed to 27 percent of India's textile and apparel exports. This was followed by the European Union contributing 18 percent, Bangladesh 12 percent and the UAE 6 percent.
With the rise in raw material prices this year, the possibility of a crisis in the near future is clear. According to experts, only those who have stock of cotton or yarn in old rates will be able to earn profit in the present time. The AEPCS has blamed the Ukraine crisis for this decline in export demand. According to him, demand in the US and Europe has slowed this year due to the Ukraine crisis as energy prices have risen.
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