rupee terms, however, there was a negligible recovery of 0.4%, with
apparel exports totaling Rs 50,479 crore in 2009/10 compared with Rs
50,293 crore in 2008/09. The data showed that all months of 2009/10
except July, August and November showed a decline”.AEPC’s
chairman Premal Udani said: “Exporters are in deep trouble as the
garment industry is reeling under unprecedented price hikes of yarns
and fabrics. The past four months have witnessed a mind-boggling 50 to
80% increase in prices of basic raw materials. Just when there were
signs of initial recovery, the industry has been plunged into a gloom
because of high raw material prices and their erratic supply.” ..Udani
asked the government to impose a 15% tax on exports of cotton yarn. He
said: “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 and said as far
as possible, exports of raw materials should be discouraged. “The
government needs to encourage the readymade garment sector which not
only earns more foreign exchange per kg of exports but creates millions
of jobs in the process.” ..Udani also appealed for removal of 16%
duty on imports of yarns. Over and above the raw material costs, he
said, the industry has been impacted by high labour costs, non-refund
of central and state levies besides infrastructure deficiencies ..”Our
share in the world market of clothing is going down,” said Udani.
“Bangladesh has become a larger garment exporter than India. By next
year, Vietnam will also overtake us.” ..The Indian apparel industry
is the second largest employer of human resources after agriculture.
Udani said immediate government intervention was necessary as millions
of jobs are at stake .