The Man-Made Fibre (MMF) exports is likely to fall short by 300 million from the 3.7 billion target set by the government due to rise in raw material prices, industry body today said.
"The prices of raw materials like fibre and yarn have gone up by around 40 per cent, which has affected the exports in the first two quarters of this fiscal," The Synthetic and Rayon Textiles Export Promotion Council Chairman Vinod K Ladia told reporters here.
The $3.7 billion export target set by the Centre for fiscal 2010-11 is not possible to achieve, Ladia said. "In fact, looking at the current pace we expect a shortfall of $300 million for the target," he said.
The MMF exports declined by a per cent to Rs 3,852 crore during the April-June period against Rs 3,898 crore in the same quarter last year. In the second quarter the exports saw a dip of 20 per cent at Rs 3,464 crore compared to Rs 4,910 crore in Q2 of FY 10.
"We expect 27-28 per cent decline in MMF exports during this fiscal," he added.
Ladia further said, if this situation continuous and drastic measures are not taken, it will be impossible to achieve the government's ambitious target to export $7 billion by 2013-14.
"To stop this volatility in prices of raw materials, the Centre should make the imports duty free or regulate the prices like done in other sectors," he said.
Dubai followed by Turkey, Pakistan and Afghanistan are the major export destinations for India's MMF textiles.
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