Cirrcular No. ES/ 6 / 2016-17 April 5, 2016
To: Members of the Council
Sub: Mounting a Joint Textile Delegation to Russia-reg.
As you are aware, the unhealthy relationship between Turkey and Russia may have a deep impact on Textile exporters from India.
Recently, reports indicate that Russia had mounted sanctions against a number of Turkish Industries mainly agriculture and tourism, but the Russian distributors and national suppliers expect this sanction to place a ban on textile and apparels as well, which is one of the major sectors for the Turkish economy (World Textile Information Network-WTIN). Although textiles were not formally included in the list, shipments of Turkish textiles have been blocked at the Russian border since November and the few shipments that manage to make it past the Federal Customs Service of Russia undergo long inspections that result in significant delivery delays.
Russian Federal Customs Service will allow the entrance of the Turkish textile products by bringing the Turkish companies in the ‘white list’ that would supply raw textile materials to Russian factories as there is no official embargo on textile materials that are produced in Turkey.
Russia is the one of the largest market for Turkish exports. The main item of exports to Russia is Textile goods, exports of which has decreased due to this political turmoil.
As per the data received, at the end of the third quarter of 2015, Turkey's share in Russian imports was 11% for fabrics made from chemical fibres and threads; more than 40% for warp-knit fabrics; and about 25% for yarns made from synthetic and artificial fibres. Finished products make up the majority of Turkish textile imports to Russia, while raw materials amount to roughly 30% of the total import volume
Moreover, there are few alternatives available to Russian enterprises who have had their deliveries of Turkish textiles cut off. Experts say that Russian textile manufacturers still don't have the capacities to substitute for Turkish imports.
Though Russia will be the main short term loser on account of its ban on imports of some Turkish items. In the longer term, Turkey will lose a valuable export market in Russia, a leading destination for Turkish products.
The ongoing crisis in Russian clothing sector has created opportunities for Southeast Asian exporters. As you are aware, exports of Man-Made Fibre Textiles has been witnessing a negative growth in the four segments namely – Yarn, Fabrics, Made-ups and Fibre. This is a good opportunity for our Members to enhance their exports to Russia by establishing business contacts in the Russian market with a platform to strengthen the business relations and to explore new opportunities, meet new buyers/importers and gain a foothold in this growing market.
We may also explore the possibility of mounting a Joint Business Delegation to enhance MMF Textile Trade with Russia in the wake of the emerging situation. As a prelude, members who are interested to join may contact the Council to help advance preparation for contacting the Embassy etc.
Thanking You,
Yours faithfully,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
