|
| CHALLENGES ARE NOT NEW TO KNITWEAR EXPORTERS |
 |
|
My Dear Fellow Exporters,
The happenings in last one month do not augur well for exports, especially knotwear exports. The DEPB rates have been slashed: the drawback rates have been cut; the much awaited restoration of 80 HHC exemption for export earnings has not materialized; rupee continues to appreciate against US follar; even though there has been some decline in yarn prices of late, the affordable levels are still high; premium on quota prices continues to be a cause of worry. The laden wieght has increased beyond the ship's capacity. The one silver line in the otherwise murky shy has been the pragmatic and timely decision of Sri. Shanawaz Hussain, Hon'ble Minister of Textiles, in deference to my request, to add 5% additional quantities to the FCFS quantities released on 10th January and open quota under FCFS on 10th March 2004 for Europe and Canada. But the ship has set sail, on the strength of exporters' indomitable courage and determination to succeed against all odds.
The terminal year if ATC has already brightened the hopes of garment exporters. After a meeting with me and leading exporters in Delhi, JC Penney has announced that it plans to increase its sourcing from India to $700 million from its current level of $ 200 million in the next 2 - 3 years. The US International Trade Commission in its Report on Assessment of Competitveness of Certain Foreign Suppliers to US Market said that even though China is expected to become the preferred source of supply US importers also plan to expand trade relatinships with low-cost countries, particularly with India "which has a very large manufacturing base to produce awide range of textiles and apparel at competitive prices and a large supply of relatively low-cost skilled labour". The Report has further said that China cannot make deep inroads in the market share of other countries in the region, notably India. Moreover, India is first in the list of preferred and reliable source of supply, next to China. Exporters have toiled for years to achieve this distinction.
In Tirupur, we are going ahead in full throttle in our preparations to take advantage of quota free regime. Our Apparel Park Project is going as per schedule and other projects ;aunched with specific goals are also making satisfactory progress. We have further planned to conduct a series of programmes, under the banner 'WELCOME 2005' for addressing issues linked to NTBs that will be unleashed by developed countries against imports from developing countries.
Challenges are not new to us. We shall overcome every challenge successfully.
A.SAKTHIVEL
PRESIDENT
|
|
|
|
|