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Cheap power likely for apparel parks

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Our Commodities Bureau Mumbai
Last Updated : Feb 06 2013 | 7:52 AM IST
The government looking to set up special apparel parks with captive power facilities to bring down the cost of electricity for producers.
 
This would help weaving units currently located at clusters like Bhiwandi in Maharashtra, an area which now faces power cuts of upto 6 hours daily.
 
Speaking at the launch of silk contract at the National Commodity and Derivatives Exchange (NCDEX) the Union minister of textiles, Shankarsinh Vaghela, said, "The finance minister has visited the apparel park in Tirupur, and we have made a proposal to set up similar special clusters for export promotion.
 
A decision on the duty entitlement passbook (DEPB) scheme and the duty drawback scheme could be expected in the upcoming budget, he added.
 
Indian exports that stood at $13 billion, mainly consisting of readymade garments, is expected to grow in the quota-free scenario, but local industry would have to improve quality and upgrade processing machinery, he added.
 
NCDEX today launched contracts in raw silk and mulberry cocoon.
 
Vaghela said at the launch ceremony, "Sericulture is largely in the unorganised sector, providing employment to six million people. Futures trading would help fair price discovery, quality linked pricing, marketing and information dissemination."
 
Central Silk Board (CSB) and NCDEX have jointly designed the contract.
 
CSB may set up a Silk Futures Trading Association (SFTA) soon and also provide warehousing and quality testing.
 
All deliveries would be through approved parties, with physical delivery being the sellers option in view of perishability of green cocoons and consequent delivery difficulties.
 
P H Ravi Kumar, managing director and chief executive officer of NCDEX, said, "NCDEX is already in the process of reaching out to cotton and jute growers and introduction of silk contracts will give growers better prices."
 
The first contract of both cocoons and raw silk opened on January 20, and the expiry date of every subsequent contract would be the 20th day of the due delivery month.
 
Members could hold upto 75 tonne of raw silk and 500 tonne of cocoons, and a client upto 15 tonne of raw silk and 100 tonne of cocoons.
 
Special margins are applicable to both contracts.
 
Movement of 20 per cent and above would attract a special margin of 1 per cent, 2 per cent margin would be applicable to a movement of over 25 per cent and 3 per cent for a movement of 30 per cent.

 
 

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First Published: Jan 21 2005 | 12:00 AM IST

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