Handloom exporters for higher drawback rates

By Our Special Correspondent

CHENNAI, OCT. 5. The Apparel and Handloom Exporters' Association (AHEA), Chennai, has called for an end to ``neglect of the export promotion function'' by the Apparel Export Promotion Council (AEPC), which has been concentrating almost wholly on quota administration.

Addressing a press conference in connection with the annual textiles/garments conference being organised by the association here on Thursday, Mr. N..F..Mogrelia, President, said a new export promotion wing should be set up in the council, which should acquire overseas marketing expertise, especially in view of the imminent end of the quota system in 2005.

Mr. Mogrelia said the Indian garment industry had ``touched the bottom'' with increasing costs of raw material, labour and power on one side and lower unit value realisation as a result of tough competition from Bangladesh, Sri Lanka and China on the other.

India had failed to leverage the advantage it had by way of a strong domestic textile industry, which was absent in Sri Lanka and Bangladesh but which still had encroached substantially on India's share of the global garments market.

The AHEA President and his colleagues called for higher rates of duty drawback and unit-wise ceiling amounts commensurate with the tax burden borne by the apparel industry.

They said the already none-too-happy situation of the industry had been compounded by the war-like situation prevailing in the world. They suggested that banks should provide advance against duty drawback entitlements and term loan for machinery should be extended at interest rates not exceeding 12 per cent.

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Section  : Business
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