Revival in Indian apparel industry being dented by fresh crisis

There is some reason for Indian apparel manufacturers,Indian Sarees Manufacturers to cheer up after a long time. The Indian apparel sector, which had been reeling under pressure since recent past primarily due to rising cotton yarn prices, has witnessed a positive beginning in December 2010.

Almost after seven months of continuous decline in apparel exports i.e. from May 2010 to November 2010, the apparel industry has seen a sign of revival in the month of December 2010. The same is being perceived by the industry as the result of the recent intervention by the Government, whereby it put a 720-million-kg cap on exports of cotton yarn for the FY 2010-11 to facilitate the steady supply of cotton yarn to the troubled domestic apparel manufacturers who were suffering at the want of cotton yarn to meet their production commitments. The industry believes that the Government initiative has helped smoothen the upwardly moving cotton prices, yarn prices to some extent.

Apparel Export Promotion Council (AEPC), the apex body of apparel exporters in India, has recently compiled a data that reflects an increase in exports for the month of December 2010 by 40 per cent from the previous month viz. November 2010. For the first time in December 2010, apparel exports touched USD 1 billion mark. The data shows that in the month of November 2010, apparel exports were clocked at USD 7.10 million. For the three months ended on December 31, 2010, the apparel industry posted exports of USD 2,438 million, as against exports of USD 2,398 million for the corresponding year of FY 2009-10. 

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