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Textile sector urged to source cotton from Africa

G. Gurumurthy

UNCTAD MOVE

Coimbatore , Dec 1

The Geneva-based International Trade Centre, the technical co-operation agency of the WTO/Unctad, has suggested that the Indian textile industry look at sourcing specific varieties of cotton from Africa.

India's textile houses could also make use of the special entitlements derived by African nations from the US trade treaty, the Africa Growth Opportunity Act (AGOA), for export of textile fabrics to African garment units for re-exports, according to Mr Mathias Knappe, Chief of Market Development.

Garment exporters and manufacturers in African nations import huge quantity of fabrics from China for use in export manufacture.

Under the AGOA route, exports from African countries are eligible for duty-free status in the US, regardless of where from they were outsourced.

Indian companies exporting fabrics could turn this into an opportunity to get into the US market by working through Africa, Mr Knappe said.

He was here to participate in an international seminar on textiles hosted at the South India Textile Research Association (SITRA).

The seminar was held after an international training programme on cotton textile value chain for trainees from East African countries.

Mr Knappe said the two-week orientation programme for members of cotton textile/trade from Zambia, Ethiopia, Tanzania and Uganda was sponsored by the Ministry of External Affairs under the `South-South co-operation' aimed at development of trade between India and Africa.

This is the first time that the WTO agency has roped in SITRA for the purpose.

The programme, according to Mr Knappe, enabled the African teams to understand the working of the cotton value chain, including issues of contamination-free cotton usage by mills.

The Indian textile machinery industry could explore Africa considering its cost competitiveness because African textile units import high-cost machines from Europe.

In order to carry the co-operation to the next stage, the International Trade Centre has suggested to the Ministry of Textiles that an expert team from the South India Cotton Association be allowed to visit Africa to enlighten the farmers on aspects of contract farming.

Mr Knappe also indicated the possibility of the Centre bringing a cotton delegation from West Africa to India next year for an industry reorientation programme.

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