Page 17 - August-September-2017

16

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. 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 $916
million 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 by Cotton Textile Export Promotion
Council India, 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.