The export of cotton-based textile goods fell in 2015-16 by 2.4% and stood at $36.2 billion compared to $37.1 billion in 2014-15. This was part of the larger trend of a fall in merchandise export, down for a 17th continuous month in April.
As per Apparel Export Promotion Council (AEPC), high prices of domestic cotton, coupled with heavy duties on import of cheaper Chinese varieties, have hampered production of cotton goods. Cotton-based readymade goods, among the highest foreign exchange earners among textile products, fell two percent; cotton fabrics fell a little more than four percent. Apart from cotton, manmade yarn also registered a major decline in export, of 11 percent.
As per estimates from the Cotton Association of India (CAI), the country is likely to produce 34.1 million bales (a bale is 170 kg) in the 2015-16 season, which ends on September 30, compared to last year’s production of 38.3 million bales. Successive droughts have reduced the supply from India, traditionally world leader in cotton production.