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