Data available for the month of February 2009 suggest that export of spun yarns has aggravated further. During the month, exports from four major ports (accounting for over 70% of total) declined 48% in terms of volume and 56% in terms of value in comparison with the corresponding month a year ago. Only 26 million kgs of spun yarn was exported valued at US$65 million. In February 2008, 50 million kgs were exported fetching US$148 million. The overall unit price realization averaged US$ 2.49/kg as against US$2.94/kg last year, implying a fall of 15%. The Indian Re has depreciated by almost 21% during the 12-month period.

Global economic crisis have taken a heavy toll on global textile industry and Indian industry is no exception. However, some positive trend has apparently set in. March and April have seen some upward movement in prices of most textile products. Cotton prices have started rising and many of manmade fibre intermediates prices have shot up dramatically. Even crude oil prices are now hovering above US$50 a barrel.

About Italy

Italy is a democratic republic, and a developed country with the 7th-highest GDP, the 8th highest Quality-of-life index and the 20th highest Human Development Index rating in the world.

Italy is located in Southern Europe and comprises the long, boot-shaped Italian Peninsula, the land between the peninsula and the Alps, and a number of islands including Sicily and Sardinia. Including islands, Italy has a coastline of 7 600 km on the Adriatic, Ionian, Tyrrhenian (740 km), France (488 km), Austria (430 km), Slovenia (232 km)and Switzerland. San Marino (39 km) and the Vatican City (3.2 km), both entirely surrounded by Italy, account for the remainder. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia. The independent states of San Marino and the Vatican City are enclaves within the Italian Peninsula, and Campione d'Italia is an Italian exclave in Switzerland.

Crude oil prices were volatile in the month of February 2009. They leaped on reports announcing drop in US oil reserves only to settle down much lower on reports indicating economic slowdown adversely impacting oil demand. This happened week after week in February. During the month, the WTI spot averaged US$37.50 per barrel, down 10% compared to a month ago. The European Brent averaged US$42.34 a barrel, however up 0.8%. Far East Asian crude oil prices averaged US$ 43.23 per barrel.

REPORT ON WORLD FIBRE TRENDS IN DEMAND-SUPPLY 2008
Global fibers/filament production in 2007 touched 68 million tons. Of these, 40% were natural fibres and rest manmade fibres. Compared to previous year, fibers production in 2007 was up 6%, repeating the previous year's growth. The growth would had been higher had the natural fibre production growth rate was positive this year. Natural fibre production declined 1.3% in 2007 following a bumper 2006 year of production.