Apparel sector `ignored'

By Our Special Correspondent

NEW DELHI, OCT. 5. Apparel exporters have expressed deep concern that the Finance Ministry has totally ignored their sector while effecting a partial roll back of the cut in duty drawbacks, even when the sector required greater Government support in the wake of severe price war in the global market place.

``For the past few days, we had been given to understand that the cut in the duty drawback rates would be restored for the apparel sector particularly. But, unfortunately, not even a single apparel item figures in the list announced yesterday, although several non-apparel items have been included," lamented a senior official in the Apparel Export Promotion Council.

The apparel sector, he said, was specially in need for restoration of the drawback rates to the original level as the sector, which had traditionally accounted for a substantial chunk of the country's total export earnings, had been passing through a bad patch in recent months.

Because of a severe price war in the international market, though in terms of quantity, apparel exports have remained constant, in terms of value there has been a sharp decline of 10 per cent over the past six months. The price war has emerged following the entry of several new players into the market in recent years.

As a result of the progressive decline, several apparel exporters have already shifted their bases to other countries such as Bangladesh, Bahrain, Egypt, Maldives and Kenya, where ``the conditions were more favourable." If there was no improvement in the situation, more would follow suit, he added.

Last year, the sector had exported goods worth $6.5 billion, accounting for 14 per cent of the country's total exports.

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Section  : Business
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