"Earnings from exports of garments, which have a share of around 38 per cent in total export earnings, have made the largest contribution to the decline in earnings from industrial exports.
"The decline in earnings from exports of rubber products as well as gems including diamonds and jewellery also made a significant contribution to the decline in export earnings in October 2012."
Exports of apparel had fallen 16.6 percent to 297.2 million US dollars in October and tea had fallen 9.6 percent to 187.5 million US dollars.
In the first ten months of the year exports had fallen 6.6 percent to 8,163 million US dollars.
Falling exports also reduce the money available to be spent on imports. But imports are also driven by spending power that comes from remittances which grew 17.6 percent to 7.5 billion US dollars in the first ten months and other foreign earnings including tourism.
Capital inflows such as government and private borrowings also increase domestic spending power, triggering imports. Last year imports were driven to unsustainable levels by credit funded oil subsidies and money printed to sterilize foreign exchange interventions.
In October imports fell 10.1 percent to 1,580.5 million US dollars with consumer goods falling 21.3 percent to 110.1 million US dollars, intermediate goods falling 8.4 percent to 974 million US dollars and capital goods falling 1.3 percent to 376 million US dollars.
The trade gap narrowed 6.7 percent to 810 million US dollars.In the ten months to October imports fell 4.0 percent to 15.7 billion US dollars and the trade gap fell one percent to 7.59 billion US dollars.