- 04 Oct 2022
- ICICIdirect Research
GLOBAL SLOWDOWN CONTINUES TO DENT TEXTILE EXPORTS FURTHER IN SEPTEMBER
News:
Textile exports for the month of September continued to witness slowdown as exports for ready made garments declined by 17% MoM (21% YoY) and exports for cotton yarn and fabrics declined by 13% MoM (32% YoY). Higher cotton and yarn prices and slowdown in key exports market such as US and Europe (owing to higher inflation) have impacted trajectory for textile exporters.
View:
Amongst categories, cotton yarn and home textile segment is the worst impacted as its monthly run-rate has declined by ~ 42% to US$ 0.7 billion from March 2022 levels (US$ 1.3 billion). Also, exports for RMG are down 37% at US$ 1.0 billion after registering an all-time high of US$ 1.6 billion in March, 2022. Recent correction in domestic cotton prices (nearly at 12 month low) could be the silver lining for the currently challenged textile exporters.
Impact:
Negative.