The textile industry is far from satisfied by the recent sops announced by the Government to boost exports.
Industry players point out that labour, power, raw material and transportation are making the end products more expensive compared to other competing markets.
Additionally, the industry is seeking that all textiles be put under one basket rather than have different classification for sops.
A. Sakhtivel, Chairman Apparel Export Promotion Council (AEPC), said, “Buyers are not putting more orders due to the economic turbulence in their economy specifically in Western Europe, the US and Canada. Besides, there is stiff competition from Vietnam and Bangladesh in the US market and from Turkey in the EU market. The Indian market share is bitten by these (Vietnam, Bangladesh and Turkey) suppliers.”
“We need to grab the market share lost from China. Moreover, increasing wage rates, hike in oil prices and inputs are other causes of worry as they dent exporters’ profits,” he said.
Earlier this week Commerce and Industry Minister Anand Sharma announced a number of measures to boost flagging exports which included extending the two per cent interest subvention for another year till March 31, 2014. The Government also added seven new countries to Focus Market Scheme.
“Textile export is suffering because raw materials are phenomenally high priced. This makes the end product expensive by 15-30 per cent than other competing markets,” an industry player said.
While the ready-made-garment has got two per cent interest subvention, the home textile has been left out. “Apparels and home textile are both cut and sew products. Hence, there should not be any distinction between the two,” industry said.
AEPC, which made a presentation to the Directorate General of Foreign Trade, highlighted the issue of non-availability of fabric.
“The textile industry had proposed that import of cotton yarn be permitted without licence at flat fixed customs duty rate, equivalent to all industry rate of duty drawback. Exports of finished product made from such imported yarn be allowed at corresponding rate of duty drawback,” an industry observer said.
On the issue of price stability in cotton yarn and fabrics, AEPC had proposed that import of cotton yarn and fabrics at fixed customs duty, equivalent to rate of drawback rate, may also be permitted and drawback may be allowed on export of readymade garments manufactured from such imported cotton yarn/fabrics at pre-determined drawback rates, industry trackers said.