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Additional five pc FCFS quota for apparel exporters
Coimbatore, Jan 19: Union textiles ministry has opened an additional five per cent quota, over the 10 per cent annual level of quota, for readymade garments under first-cum-first-serve (FCFS) system.
Though the ministry had opened 10 per cent annual level
quota on January 10, the orders-in-hand with the garment exporters
were much more than the quota opened and that too for high
value orders, Apparel Export Promotion Council (AEPC) chairman
A Shaktivel said.
Though, this reflected the growing demand and high unit
value realisation of Indian Apparel Abroad, the 10 per cent
quota had left many exporters high and dry and made the quota
premiums sky-rocket in the open market, thereby increasing the
transaction costs of other exporters, Shaktivel said.
Textiles Minister Shahnawaz Hussain agreed to open the
additional five per cent from today, Shaktivel said.
He said the step would safeguard the interests of the
industry and confidence of overseas buyers, and would benefit
small exporters in making their shipments and honoring their
commitments.
This would also result in an additional growth of exports
to the tune of approximately 23 million pieces worth about USD 113
million (Rs 510 crore) of foreign exchange to the
exchequer, Shaktivel said.
Bureau Report