In rupee terms, however, there was a negligible recovery of 0.37 per cent. Apparel exports totalled Rs 50,479 crore in 2009-10, compared with Rs 50,293 crore in 2008-09″
“However, in dollar terms, all the months of 2009-10 except July, August and November showed a painful downslide .
“Exporters are in deep trouble, as the garment industry is reeling under unprecedented price hike of yarn and fabrics. The past four months have witnessed a mind-boggling 50 to 80 per cent increase in prices of basic raw materials. Just when there were signs of initial recovery, the industry has been plunged into gloom because of high raw material prices and their erratic supply,” Mr Prem Udani, Chairman, AEPC, said .
“AEPC requested the Government to impose a 15 per cent tax on exports of cotton yarn. “At a time when domestic demand for fabrics and yarns is booming, free exports of basic raw materials like cotton and cotton yarn take millions of jobs away from the country.” .
“He urged the Government to have long-term calibrated exports of cotton and yarn. As far as possible, export of raw materials should be discouraged .
Duty on imports
“Mr Udani also appealed for removal of 16 per cent duty on imports of yarns .
“Over and above the raw material costs, he said, the industry has been affected by high labour costs, non-refund of Central and State levies, besides infrastructure deficiencies .
“Our share in the global clothing market is going down. Bangladesh has become a larger garment exporter than India. By next year, Vietnam will also overtake us,” he said .
Date:6/5/2010
Source:Dailytimes.com