The Annual Supplement 2013 – 2014 to Foreign Trade Policy (2009 -2014) is envisaged to be announced in the month of April 2013 and we have submitted our proposals to increase the garment export from our country. One of our main requisitions has been to allow Duty credit scrip at 5% of garment exports for the export performance in the year 2012- 2013, for issuance of duty credit scrip from the year 2013 – 2014 onwards on actual user condition and the scrip will be used for offsetting customs duties to be paid on import of specialty fabrics which are not widely available in India. As the exporters are exploring new markets, we proposed to increase of duty scrip from 3% / 4% to 5%, an encouragement for market diversification. Apart from this, we have requested to extend the scheme announced for incremental growth till 2015 – 2016, early finalisation of FTA with EU, duty credit scrip at 5% on FOB value of exports to countries in Latin America, Australia and New Zealand, where freight charges to FOB are high including extension of Zero duty EPCG scheme till 2015 – 2016.
Our Hon’ble Minister for Commerce, Industry and Textiles had called for Board of Trade meeting on 22nd March 2013 in New Delhi and as a member in the Board of Trade, I attended the meeting and requested to fulfil the above mentioned requirements in the annual supplement 2013 – 2014 to FTP. I am much hopeful that as like last year, our pleas would be considered and addressed for the development of garment export sector this year also.
The Duty Drawback Committee for 2013 – 2014, set up by Ministry of Finance, consists of Dr. Saumitra Chaudhuri, Member Planning Commission and Chairman, Drawback Committee, Shri. S.B.Mohapatra (former Textile Secretary) Member, DBK Committee, Shri T.R.Rustagi and Shri Gautam Ray, Members Drawback Committee including Shri Vinod Kumar Agarwal, OSD, Drawback committee visited Tirupur on 3rd April, 2013 and a meeting was organized to present our cases effectively.
The decline of Knitwear exports in 2012 – 2013 due to recession in EU market and less off take in US market coupled with other adverse factors was explained to the committee and after pointing out the increase in dyes and chemicals and other inputs prices, I said despite increase in the cost of production, it could not be added up in the garment price and in fact the average unit value realization of the garment has come down by 5.66% due to stiff competition in the International market. It was also mentioned that around 70 % of garment exporters fall under SME category and out of 7,000 registered exporters, only 3 Exporters are over Rs.1, 000 Crore Exports and less than 10 exporters are Rs.500 Crores exports. I also mentioned that apparel is one of the labour intensive sectors, which has the capacity to absorb millions of additional workers and added that every additional exports of US $ 1 billion in garment sector will create approximately four lakh jobs.
We hope the Drawback committee would consider our requisitions and increase the Drawback Rates for 2013 – 2014.