Textile export councils to be restructured

With the post-quota regime set to become operational in January 2005, the government is considering measures to restructure the functioning of export promotion councils "" Apparel Export Promotion Council (AEPC) and Texprocil "" since one of their main roles has been monitoring and allotment of export quotas.

The working of these councils should now focus on providing information about markets and products to exporters and making demand forecasts for existing and new export markets, senior textiles ministry officials told Business Standard.

"Councils like Texprocil already provide advisory services and print publishing materials. This activity will be strengthened in the post quota regime," an official said.

Though both councils do not get any grants from the government, the phase out of quotas is expected to reduce the membership of both councils and revenue earnings.

AEPC has a membership of around 14,000 and earns as much as Rs 7 crore from membership fees annually while its earnings from quota regulation and administration is around Rs 27 crore.

"We expect that in the post-quota regime our membership will reduce to around 2000. We will need government support for carrying out export promotion activities.We will soon be sending a detailed proposal on this to the textiles ministry," AEPC Chairman A Sakthivel said.

Sakthivel said that the council will also be reducing its offices from 13 at present to around five. Texprocil with 6000 members is more hopeful of retaining its membership since quota administration is only a small part of its activities.