• PAGE ONE
• INDEX
• HOME

Export quota for garment categories not fully used

Our Bureau

COIMBATORE, Sept. 17

EXPORT entitlements for several garment categories including a few popular knitwear items meant for Europe and the US markets have gone abegging in the FCFS (first-come-first-served) quota that was opened for allocation last week by the Apparel Export Pr omotion Council (AEPC).

That considerable quantities are still remaining in balance against several categories of woven and knitted garment items is indicative of the slow movement of these items in the quota markets. Consequently, some of the key garment categories of exports which used to attract cut-off prices (CoP) in previous FCFS quota releases failed to have any CoPs this time.

Among the knitted garment items/categories, for example, which are of specific interest to the Tirupur region and for which sizeable quantities are still available for export to EU, are categories 4,5 and 26 (T-shirts, Jerseys, pullovers and ladies dress es).

As on September 13 when the applications for FCFS quota meant for the last quarter of the current calendar year were opened, a quantity of 11.56 lakh pieces were still left uncovered under category four (knitted T-shirts) for the EU.

In the case of Jerseys and pullovers, a quantity of 23.40 lakh pieces were still available for the same countries/categories. As for (knitted) ladies dresses under category 26 for EU exports, entitlements for over 29.51 lakh pieces were still remaining. There have been no cut-off prices earmarked for these items of exports. In the case of knitted nightwear (Category 24) for EU export, a quantity of 3,34,27,437 pieces were remaining.

As for the entitlements for the US exports, barring five items -- three knitted garments and two woven garment categories, none could attract CoP. While knitted T-shirts and blouses (Category 338/339) managed to have a CoP of $5.65, cotton knitted trouse rs and shorts (Category 347/348) have a CoP at $6.25. These items in the woven category had their CoP at $7.80 apiece. The knitted pyjamas/nightwears (category 351/651) have the CoP at $7 apiece.

Enquiries with the knitwear exporters reveal that increased quota made available this year for the EU/US exports under the flexibility clause and the general slowdown in the garment sourcing by the principal importers have led to the slow movement.

Another reason attributed to the slowdown in import-orders is the preference of the importers not to have pre-stocking. Many concentrating on sourcing winter garments this time around are also reported to have added to the slow down in garment exports. T irupur exporters are hoping that the short-fall could be bridged by November-December when the orders for summer garments would pick up.