Global slowdown continues to dent textile exports further in September
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.
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.