Strategy to spur textile exports

By Our Staff Reporter

COIMBATORE, JULY 31 In a bid to spur textile exports, it has been planned to improve promotional activities of the Cotton Textiles Export Promotion Council (TEXPROCIL).

A study on restructuring TEXPROCIL to face the international challenges after 2004 will be presented at its annual general meeting in September 5, the chairman, Mr. T. Kannan, told presspersons here today.

The new textile policy envisaged exports to the tune of $ 50 billions by 2010, though the achievable target was less. Exports through TEXPROCIL were set to increase to about $ 15 billions. Hence, there was a need for redefining its role. The strategy to improve its function was studied by a private consultant. The sector-wise study would be presented on September 5.

Mr. Kannan said exports were on the decline in the past five years and this year witnessed a negative growth. It was slipping from the average exports. The decline was common for all textile sectors, including yarn and made-ups. Global recession was the main reason and the U.S. recession affected the Asian countries.

The vast expansion of production capacity in the 1990s was taking a ``breather'' now. About 50 per cent of the Indian exports were to the South East-Asian countries and Singapore, and Japan too were affected by the global recession.

However, Indian yarn exports continued to dominate the world market with a 25 per cent share. Indian exports were represented by a range of varieties which was not the case with other competing countries. The global recession affected the ``sentiments'' of Indian exporters.

A significant portion of yarn exports was to Bangladesh and the current production capacity there was three million spindles. Bangladesh was subsidising local yarn production heavily. Industries that used domestic yarn were granted 20 per cent subsidy. TEXPROCIL was examining whether these measures were ``WTO compatible''.

The Chairman of Indian Cotton Mills Federation, Mr. B. K. Patodia, said the working group's recommendations on textiles during the 10th plan would be finalised at a meeting on August 21. The suggestion of doles to the technically sound, but financially weak units had not received a positive response from the Government. The financial set-up should be revamped.

The industry could probably revive during the first quarter of 2002 and the export trend noticed during the first six months of this year was expected to continue.

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