Exporters jittery, though export queries rise
Although there has been a 20% rise in export inquiries within the final fortnight from the US, Australia and Japan, exporters in the industry are worried about the sharp rise in orders as they grapple with rising labour prices amid social distancing norms. The industry is of the opinion that anti-China issue can be aiding the upper variety of inquiries with exporters.
Exporters of handicraft, jewelry and footwear have received important queries from the EU. Meanwhile, the cancellation of orders had resulted in merchandise exports contracting 60% from a 12 months earlier to US$ 10.36 billion in April. The federal government expects the contraction in exports in to be around 30-35%.
Sanjay Jain, chairman of ICC Nationwide Professional Committee on Textiles, stated “China is shopping for from India and there are inquiries from the EU and Bangladesh. Cotton costs have fallen and the previous orders, which acquired cancelled, have now been renegotiated.” As per the industry estimates, cotton yarn is being exported at a 15-20% low cost particularly to China.