The proposed decision to permit duty free access to 48 apparel products including knitwear products exported from Bangladesh under the South Asian Free Trade Agreement (SAFTA) has come as a rude shock to the knitwear sector.

Expressing concern over this move, the knitwear sector in Tirupur has appealed to the Government to reconsider its decision on allowing Bangladesh garments under duty free access.

The Tirupur Exporters' Association President, Mr A. Sakthivel, has in a communication to the Prime Minister, Dr Manmohan Singh, sought a level playing field to help withstand pressures coming out of imports and for sustaining the market.

Stating that such agreements should be mutually beneficial for the growth of industries in both the countries, he said the proposed move would not only affect the domestic market but to a certain extent, knitwear products exports as well.

“Bangladesh's garments export has been showing a year-on-year growth in the global market compared to India due to its inherent advantages in cost of manufacturing. In 2010-11, export of garments from India stood at $11.16 billion, whereasexports from Bangladesh clocked $15 billion.

Bangladesh gets additional advantage when they allow duty-free import of cotton and yarn on reciprocal basis. Considering the gravity of the issue and the consequences thereof, the Government should reconsider the decision and protect the domestic industry,” he said.

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