The Hindu Business Line : Apparel exports to quota-restricted countries up 19 pc in April-October

REVERSING last year's insipid performance, the country's apparel industry exports to quota-restricted countries appears to be doing well by registering a double-digit growth, as the readymade garment exports during the first seven months of the current fiscal (April to October) notched up a 19 per cent growth in value and 13.21 per cent in volume terms at $2886.5 million against the corresponding months of the last fiscal.

Available trade figures gleaned by the Apparel Export Promotion Council (AEPC) reveal that exports to the US, the single largest market, during the period under review amounted to 263.7 million pieces valued at $1341.3 million, signifying an increase of 27.21 per cent in terms of volume and 25.46 per cent in terms of value, when compared to April-October 2003-04.

When contacted, the Chairman, AEPC, Mr A. Saktivel told Business Line here that the trend in exports so far was on an encouraging line and the outlook for the rest of the fiscal too would be undoubtedly "good" with festive season beginning next month to be followed by the New Year celebrations.

He said that the council is optimistically predicting that the garment exports during the whole year would result in earnings of around $5.72 billion, if the signs of increase noticeable in recent months persist. Exports of readymade garments to the 25-member European Union (EU) during April to October 2004 amounted to 392 million pieces valued at $1449.5 million against the corresponding months of the last fiscal, revealing an increase of 6.81 per cent in terms of volume, but 15.56 per cent in terms of value.

Exports to Canada during the period under review amounted to 28.9 million pieces valued at $95.7 million, which was a decrease of 4.93 per cent in terms of volume, and 2.64 per cent in terms of value, when compared to April to October 2003.

A particularly noteworthy feature is that exports of garments to quota countries during the month of October 2004, the latest available, havebeen 94.3 million pieces valued at $380.9 million, representing an increase of 40.12 per cent in terms of volume and 47.92 per cent in terms of value.

Industry sources said that with the end of quota regime by the dawn of 2005 being imminent, the industry is quite confident of capturing a larger share of the international market, as most of the leading garmenting units in the country had gone in for stepped-up outlays on modernisation and technology absorption to emerge competitive both in price and quality. However, a frequent complaint of the industry pertains to the high transaction cost in terms of delay in ports, particularly in seaports where impediments to the natural movement of trade cargo pinches the industry adversely. The industry sources contend that they have taken up this matter with both the Ministries of Textiles and Commerce and do expect some concrete action to ease fast the congestion in ports.

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