Expensive gas hits textile exports

High gas prices appeared to have made textile exports uncompetitive on the world market resulting in an eight per cent month-on-month and 7pc year-on-year decline to $1.3 billion in November. In rupee terms, the country’s textile exports clocked in at Rs376bn, down by 7pc month-on-month but rose 19pc year-on-year owing to rupee depreciation against the dollar, said a note by Topline Securities on Thursday. Basic textiles witnessed a fall of 14pc MoM and a rise of 20pc YoY to $243m in November. The YoY substantial increase resulted from the 12 times YoY increase in raw cotton exports due to the significant growth in cotton crop this year as compared to last year, which was greatly affected by floods. Value-added textile exports reached $920m, up by 6pc MoM while it fell by 12pc YoY. Towels remained the major contributor to the segment with 21pc MoM and 20pc YoY drop in exports. Knitwear saw a 5pc MoM and a 12pc YoY decline.