Vaghela plays down January dip in exports

The Union minister for textiles Shankarsinh Vaghela today sought to downplay the decline in textile exports in January, saying that as per initial trends exports were on the rise in February.

"While there has been a slight decline in January, exports are rising from February and we expect the growth to be maintained," the minister said.

Textiles secretary R Poornalingam also pointed out that as per data available with the ministry, textile exports to the United States during the first three months of the calendar year had registered a 20 per cent increase in volume.

According to provisional data compiled by the Directorate General of Commercial Intelligence and Statistics has pointed out that textiles exports had declined by 7.6 per cent in January, 2005 the first month after the phase out of the global quota regime.

India's textiles and clothing exports were estimated at $ 1.16 billion in January 2004, according to the provisional data compiled by DGCI&S. The export of readymade garments, the largest item in textiles basket, dipped 8 per cent to $542 million during January 2005 as against $ 589.1 million in the corresponding period last year.

However, according to data from the Office of textile and Apparel, United States Department of Commerce, export of items from India which were under quota has registered a healthy growth during the first three months of the calendar year 2005.

Exports of items like cotton dresses, knit shirts, blouses and trousers as also items like pillow cases and cotton sheets which were restricted under the quota regime have shown a growth of over 20 per cent in exports to the US during January-March 2005 over the same period last year.

Export of items like knit shirts has increased to 11.92 million square metres during January-March 2005 from 5.52 million square metres, a growth of 116 per cent, while exports of non-knit shirts has increased to 25.11 million square metres from 18.95 million square metres during January-March 2004, a growth of over 32 per cent.

Similarly, cotton trousers exports have also increased to 6.37 million square metres from 3.68 million square metres, a growth of nearly 73 per cent.

PTI adds: The government will enhance the minimum support price (MSP) for Jute to about Rs 910 per quintal from July, Vaghela announced today.

"We will be revising the jute MSP from less than Rs 900 to Rs 910 per quintal from July," Vaghela told reporters after announcing the National Jute Policy.

He said the annual review meeting for the Jute (products compulsory) Packaging Act 1987 would be in May.

He said the government was also looking at revising the jute content norm to be classified as jute product and increase it to about 40 per cent (jute content) from the current 10 per cent.

"The board will be under the ministry of textiles and its composition will be finalised later," textiles secretary R Poornalingam said.

Vaghela said the board could be headed by an official and could include experts, labour unions, exporters and other stakeholders.

The board will also explore possibilities of establishing a national institute of natural fibres to harmonise all developmental and promotional activities, he said.

He said jute technology mission, approved earlier by the planning commission, will be operationalised in the first half of 2005 itself to make jute sector an intrinsically competitive and integrated entity.

The policy also focusses on developing next generation jute machinery through a comprehensive technology benchmarking after a technology audit, five-year plan for machinery development and establishing research and development set-up through public-private partnership.

"We also plan to set up a national jute and jute textile museum to preserve and highlight the heritage of jute," the minister said.

Under the policy, jute will be positioned as a superior and environment friendly material and efforts will be made to enhance the productivity of raw jute and increase exports through innovative marketing.

It will also strive for better conditions for workers in the sector.