Financial Daily from THE HINDU group of publications
Thursday, May 26, 2005

Port Info

Group Sites

Industry & Economy - Textiles

Textile Minister's assurance to exporters on trade issues

Our Bureau

New Delhi , May 25

THE Textile Minister, Mr Shankarsinh Vaghela, on Wednesday convened a meeting of textile exporters and chiefs of various textile export promotion councils, including cotton, apparel, carpet, jute and handicrafts, in order to get a grasp of their problem of not being able to take advantage of the post-quota regime opportunities in global textile trade.

Sources privy to the hour-long meeting told Business Line here that exporters highlighted problems such as insufficient drawback rates and value cap and inflexible labour laws that do not allow exporters any leeway to resort to shift system for women workers, particularly in the high-value apparel sector, and other infrastructure-related and Customs constraints.

They said the drawback/DEPB (duty entitlement passbook scheme) rates, which are direct assistance to the exporters, have further caused problems because of the lower caps, which, in a way, compel exporters to keep unit value realisation low.

The Apparel Export Promotion Council Chairman, Mr A. Sakthivel, said that foreign direct investment was not coming into the apparel sector on a desirable scale presumably because of rigid labour laws. He also pointed out that investment during the non-quota period does not get indirect subsidy, which the industry was getting by way of quota allocation under the New Investors Entitlement System.

Hence, he said, it would be proper if the Technology Upgradation Fund Scheme (TUFS) could be modified to provide better assistance to the garment sector. The council proposed that the additional incentive in the form of 10 per cent capital subsidy for the processing machinery under TUFS might be extended to specified garment making machineries too.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon expected to hit Andamans today

Control room for rain problems in DK dist
Indian consumer confidence rising: MasterCard survey
SAARC nations to focus on statistics, data collection
`Political will, sincerity could help overcome disputes'
Musharraf tells Indian business delegation

FIEO signs pact to boost trade with Argentina
Now, utilities profit from power crunches through hourly contracts
Maharashtra Govt, Oppn fail to reach consensus on power crisis issue
Unbundled distribution cos may open escrow accounts
Power supply to Adilabad hit
Textile body nod for NTC land buy proposal
Textile Minister's assurance to exporters on trade issues
Bill to regulate TV channels
ICWAI unveils e-learning module
Globsyn B-school to provide consultancy
AP panel to submit report on handloom sector next month
Nuziveedu launches Bt cotton strains
Research body develops GM rubber — Variety tolerant to drought, environment stress
EPFO board meets on Saturday to decide on interest for 2004-05
Cabinet panel on WTO to discuss revised offer on services this week
AP to create land bank for distribution to poor
Two-day meet on plumbing
Keltron to hold workshop gets $10-m funding
Kerala Govt sanctions Rs 4.31 cr to build seawalls

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line