Exporters see surge in Christmas orders

Exporters see surge in Christmas orders

Namrata Kath Hazarika 05 Jul, 2011 / SME TIMES

The US and European markets are gaining back the confidence which was hurt due to the global crisis, said Indian exporters while adding that they are witnessing demand surge due to potential placement of new orders for the Christmas season.Raj Kumar Malhotra, Chairman, Asian Handicrafts Pvt Ltd and Immediate Past Chairman of Export Promotion Council for Handicrafts (EPCH) told SME Times, "We are witnessing demand rise of 20 percent for handicraft products from the US and European markets as compared to the last fiscal."He said, "The crisis in both the markets which continued for the last three years have been stabilizing now. Handicraft products are witnessing demand rise and sales also pick up during the November and December season due to the Christmas as these are gifting products."He further added that the best time of the year for handicraft exports is July, August and September. There is the growth as things are improving to some extent in the US, which is the main market for Indian handicraft products.While, the European market will be a challenge as many countries like Greece and Spain are still debt-ridden but orders are flowing at the moment although the quantum of orders are less as compared to the last fiscal, Malhotra mentioned.In fact, Raseeque Ahmed, Chairman of the Council for Leather Exports (CLE) also added that buyers have already placed the Christmas season's order in the month of March-April. At present, the production is taking place and by the end of July the shipping of goods will take place.There has been 20 percent demand rise for leather products as compared to the corresponding year, he said.When asked on how much increase in profit he is expecting this year, he mentioned, "As we know that the raw material prices are going up, the energy is so expensive and above all other things are also expensive, it would be difficult for me to tell but after July it would be possible to tell on the profit margins.""We are just watching the situation but the demand flow has increased as compared to last fiscal," Ahmed added.The demand in labour-oriented sectors such as textile, apparel, and carpets are still expected to pick up as the buyers are currently asking for samples before placing orders, said Subhash Mittal, Chairman, Payal International Ltd and member of Indian Silk Export Promotion Council.He said for the textile and apparel products, the buyers are still watching the market. Also, the new orders for the apparel products come in the month of September. And, he predicts that this year the quantum of orders might be less due to the European crisis as compared to the corresponding year.But, he said the confidence level of buyers in the US and Europe to some extent have increased this year.He clarified that the placement of orders will be there. "I am hopeful that the orders will be there especially in cotton product exports but the profit margin will be less. And, with inflation it is obvious that raw materials and other things will get expensive as well as the labour costs will also increase," Mittal pointed out.