FOR THE APPAREL SECTOR:
 
2% Market Focus product scheme to USA beyond 30.9.2010: The Market Focus Product Scheme of 2% was made available for exports of garments to EU-27 upto March 2011. The exports of garments to USA should also be included under MFPS beyond 30th Sep 2010 at par with exports to EU-27 and should get 2% benefit.
 
2% interest subvention facility for apparel exporters be given w.e.f. 1.4.2010. for one year – apparel industry was given  interest subvention of 2% as a labour intensive industry till March 2010. However, vide RBI notification (RBI/2010 -11/165) the benefit has been restricted to 4 items  only, at 8 digit HS category, leaving out many major export categories.
 
Delinking TUFS from 1% scrip to status holder: Under Focus Market Scheme, 1% scrip is available to status holder exporters. However, this is not available to those exporters who are using TUFS. This stipulation should be removed.
 
Disincentivize cotton and yarn export – The volatility in prices last year could be curbed only through a cap on exports. With the global demand position still very strong, similar measures need to be continued to ensure stability in availability and prices of yarns and fabrics.

India’s apparel exports has been declining for the last two consecutive year :
The major reasons for this downfall have been:
Cotton prices up by 77% in the last 12 months.
Cotton yarn prices touched all time high of over Rs 225/kg(40s) – Increase by 58-80% in the last 16 months.
 Fabric price shot up by 38-90%
 Withdrawal of certain benefits by Govt. like:
Reduction in Duty Drawback from 8.8% to 7.5%
Withdrawal of 2% Focus market scheme to USA beyond 01.10.10 to 31.03.2011

Premal Udani, Chairman, Apparel Export Promotion Council