Financial Daily from THE HINDU group of publications
Thursday, Jan 24, 2002
Financial Daily from THE HINDU group of publications Thursday, Jan 24, 2002 |
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Industry & Economy
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Textiles `Garment exporters need Govt help to take on China' G. Gurumurthy
COIMBATORE, Jan. 23 EVEN as the country's textile and clothing exports are struggling to maintain tempo, garment manufacturers are bugged at the competitiveness displayed by the Chinese garment exporters in the international market. "We do not know how China could sell so cheap and this factor is worrying all of us in the garment business,'' said Mr Virender Uppal, Chairman of Apparel Export Promotion Council (AEPC). According to him, compared to the Chinese garments, Indian goods were perceived to be costlier by 20-30 per cent. In order to cope with the changes in global textile trade under the WTO environment, AEPC is keen to help the garment exporters bring down the cost of production through increased productivity and make their operations cost-competitive. "But Indian exporters have to bear hidden costs such as higher transportation and energy costs leading to higher transaction costs. To partly overcome this, AEPC wants the Government to compensate the exporters by extending up to 2004 or beyond that period export incentives such as income-tax exemption, stable policy on duty drawback and enlarging the scope of duty-free import of trimmings and embellishments allowed up to three per cent of the free-on-board value of exports to cover some more items, including fabrics,'' Mr Uppal said. The AEPC Chairman was speaking at the inauguration of the three-day exhibition on knitwear accessories, `IKF-ACMATEX Fair 2002' at Tirupur. Later talking to presspersons, Mr Uppal said the AEPC, as part of its restructuring exercise, had planned to bring down its manpower strength through voluntary retirement schemes between now and 2004 from the present 600-odd to around 100/150. Alongside, the council which will have no export quota regulation job by 2004 will reorient its operations towards export promotion. The Tirupur Exporters' Association (TEA) Chairman, Mr A. Sakthivel, urged AEPC to take up with the Centre the need to protect the SSI status of the knitwear industry and also ensure excise duty exemption. The IKF-ACMATEX fair, primarily aimed at promoting sourcing of quality inputs/raw materials needed by the knitwear industry, including accessories and fabrics, is being held under the aegis of TEA and the AEPC. It has attracted displays from several knitwear supportive services such as yarn/fabric suppliers and prominent embellishment labels from upcountry centres.
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