Yarn exports declined by 16% in November 2008 from its month ago levels. India exported 27.8 million kgs of yarn to 72 countries during the month. The average unit price realization was down 15 cents to US$ 2.92/kg. Exports of cotton yarn dropped 14% during the month with exports at 21.7 million kgs. The average price realization was 2.94/kg. Viscose and PC yarn exports also declined by 25% and 5% respectively.

Destination wise, Bangladesh was the major importer of yarn followed by Egypt and Korea. Bangladesh imported around 3.4 million kgs of yarn, down 10% compared to a month ago level. Unit price realization averaged at US$ 2.96/kg. Exports to Egypt and Korea declined by 17% and 30% respectively. Both Egypt and Korea imported about 3.8 million kgs in total. The respective average unit price was US$ 2.32/kg and US$ 2.84/kg.

Crude oil prices decline by 20 – 30% in the month of Nov 08. The WTI spot price averaged at US$ 58.60/ barrel, a decline of 26.89% over the previous month. Likewise, the European prices have also declined by 28.3% to US$ 54/ barrel. In Far East Asia, crude oil price averaged at US$ 49.84/ barrel, a drop of 24.6%. Naphtha prices too declined 40% to US$ 309/ton CFR.

Polyester Chain
Polyester raw material prices showed a mixed trend in November 08. Prices declined till the 3rd week of November and showed some sign of improvement towards the end of the month. 1.4D PSF prices declined by 23% in China local market whereas the FOB price in Taiwan/ Korea dropped by 19.6%. 1.4D PSF price in Taiwan averaged at US$ 1.01/kg FOB. Like-wise, PFY prices had also plunged. 75D POY prices declined 13.7% to US$ 1.25/kg FOB Malaysia /Indonesia. Polyester chips prices declined by nearly 30% in Taiwanese and Korean market. Polyester chip prices

The Indian textile industry has been dogged by serious problems of unprecedented levels over the past two years. However, the problems have been accentuating one after another

The Crises
Evidently the present crisis began with the steep and fast appreciation of Indian rupee against US dollar from early 2007. By the time the rupee started depreciating, cotton prices started sky rocketing both in the international as well as in the domestic markets, registering an increase of over 40% in India within a period of less than 6 months ending September 2008.Outside the industry's boundary increasing interest rates and steep power shortages which the industry has been grappling with for several months now. Reportedly, Tamil Nadu accounting for around 40% of India's spinning activity and over 25% of total T&C activities is facing a 40% power cut which will substantially reduce production this year.