India: Increasing Production Costs And Reducing Exports Of Woolen Fabrics

2008/8/13 17:58:00 23

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After suffering the impact of the rupee appreciation in the last fiscal year, India's exporters of woolen goods are currently facing the severe environmental impact of high production costs, which may encroach on their plans to expand their consumer base.

Because of plateau material price and packaging cost, production cost has increased by 20-25%.

India mainly exports to Australia, the Middle East and the United States the woolen items (shawls, woven garments, casual wear, fabrics and blankets).

In the 2007-08 fiscal year, exports of woollen goods in India fell by 6.19%, from 19 billion 190 million rupees in the 2006-07 fiscal year to 18 billion rupees.

In addition to the price of raw materials, the cost of shipping and packaging materials has also led to an increase of 10-30% in production costs, which has increased the grief of exporters.

High waste duty (15%) and low export incentives are the problems facing the woolen industry. The original export target of 23 billion rupees (US $550 million) in the 2008-09 fiscal year can not be achieved.

According to the India wholesale price index for the weekend ending July 26th, the price of wool yarn increased by 8.1% compared with the previous week, and the price of woolen fabrics increased by 5.67%.