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Friday, March 29, 2024

Fall in Indian cotton yarn exports

The Indian cotton yarn witnessed a fall in exports of about 9.79% in the first four months of fiscal year 2017-18, said the results of data compiled by the Cotton Textile Export Promotion Council. The exporters also witnessed a slow pick by Bangladesh and China who are the two major target markets working on about half of the cotton yarn shipments from India for decline.

The cotton yarn exports of India were worth $916million between the month of April and July. The exports to China that was 31% of the net export figures had declined to about 48.58% during the period. This decline has placed a risk on the substantial investments in the sector. Moreover, because of 60-65% decline in the utilization capacity that is due to the weak demand from domestic and global market said leading Indian business daily report.

This report features the demonetization and the imposition of 5% goods and services tax for the extreme pressure that is faced by the local cotton yarn manufacturers. The reason for this situation is that most of the industry is working in an unorganized manner with the cash. The cotton yarn manufactures never paid any taxes previously so the GST compliance has brought the business to a standstill.

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