CII pushes for textile parks in West Bengal

Confederation of Indian Industry (CII) has recommended speedy implementation of an apparel and an accessories parks in the state to promote export of textile and garments from West Bengal.

Presently the state has virtually no share in the $ 6 billion (2002) export basket from India.

In a study presented by to the state government recently, CII has also suggested linkage with the thriving ready made garment (RMG) industry in Bangladesh.

It also advocated closer ties with African nation Uganda for duty free access for textile products to the US market until 2007.

One of the key areas of concern mentioned in the study is non availability of basic raw material like cotton yarn.

In silk, the situation is slightly better with West Bengal's share of Indian mulberry silk production about 0.10 per cent.

West Bengal's share in Indian cotton yarn and cloth production is negligible.

The government should promote farmer's to increase production of cotton and silk in the state so as to reduce the cost of raw materials, the study pointed out.

Apart from the raw material, outdated technology in the existing mills needs to be immediately changed. There are about 37 textile mills in the state, of which 19 are privately owned and 18 publicly.

However, of the 19 private mills, only four or five are operational.

The CII report said an apparel park would attract fresh investment to the state.

The single most important impact of the apparel park would be to demonstrate Bengal's intent on attracting players in the apparel and textile trade, it added.

An accessories park, on the other hand, should be set up with focus on apparel accessories.

The park would attract smaller units that would provide complementary and critical accessories such as buttons, elastic, zippers to the adjacent apparel manufacturing units.

Moreover, CII suggested creation of a task force to initiate work and oversee progress in the textiles and apparel arena.

The team should include representatives from the state government, WBIDC, AEPC (Apparel Export Promotion Council), textiles ministry, CII and select apparel firms.

The task force should have a term of one year, with specific and quantifiable objectives, it pointed out.

Even as the textile industry is in rudimentary stage of development, there are some pockets of strengths. Most chemicals and dyes required in the production process are available locally. Moreover labour costs in the state were low.

Average monthly wages and benefits amounted to Rs. 3,809 (about $83 at prevailing exchange rates) in the sector, almost at par with China at $77, but substantially higher than Bangladesh at $50.

Minimum wages in the tailoring industry are also relatively low and range between Rs. 2,501 and 2,538 per month.

West Bengal also possesses a large workforce concentrated in the Metiabruz and Garden Reach areas that is highly skilled at embroidery, beading.

In fact, such work from other parts of India is outsourced in significant volumes to West Bengal. Moreover, West Bengal possesses a distinct advantage in the area of knitted cotton goods.