India’s textile exports are likely to decline marginally to $40 billion this year as against $41.4 billion last year. However, prices of raw materials in India are higher than prices in international markets. Because of this, the country’s exports are becoming uncompetitive. India is the largest producer of cotton in the world. The industry wants a quick implementation of the Goods and Services Tax (GST) and a rethink on free trade agreements with major consuming countries like Canada.

Textile mills want cotton available at prices cheaper than prevailing prices in international markets. The Cotton Textiles Export Promotion Council (Texprocil), has been the international face of cotton textiles from India facilitating exports worldwide. Texprocil has a membership of around 3,000 companies spread across major textile clusters in India. Its members are well established manufacturers and exporters of cotton textile products like cotton, yarns, fabrics and home textiles.

Demand is healthy for Indian cotton from Pakistan and other Asian countries like Bangladesh and Vietnam. India’s production in the current year is estimated to drop four per cent especially after floods hit cotton growing in Tamil Nadu. Financial year ’17 is unlikely to bring cheers for the Indian cotton sector as prices are set to be under pressure.