From: info@mrtextiles.net [mailto:info@mrtextiles.net]
Sent: Saturday, December 04, 2010 11:47 AM
To: info@mrtextiles.info
Subject: APPEAL
Dear Sir/Madam,
Everybody must be aware about Govt. of India' s decision for "suspension of export contracts' registrations" w.e.f. 1st dec' 10. We feel, its a decision taken by heart, just responding to the cries and complaints of domestic textile manufacturers.
With due respect to the worthy bench of the decision makers, we would like to inform that their approach has been Anti trade/industry - Anti economy, and just eccentric about the masses (either farmers or small knit garmentors / weavers).
Going by the statistics:
- the threshold level is set at 720 million kilos (720,000 tons) to be exported from the country during financial year, for which EARC(s) already issued.
- this figure is approx. 21% of
- till Nov' 10 in 8 months, the shipments made constitutes 457 million kilos (with a monthly average of 57 million kilos).
- the balance i.e. 264 million kilos has to be depleted till march'2011. Going by an exegarrated target of 60 million kilos per month,
- this means, on 31st march' 11,
qty of 24 million kilos.
lets take another view of the situation:
As per memorandum no. 42/2/2010/E & SB dt. 09.04.2010, point no. 3(i), the EARC application should be submitted within 45 days prior to the date of the actual shipment, means Export has to be effected within a stipulated period of 45 days.
Going by above, balance qty of 264 million kilos (which as per records is already issued for EARC) would have to be exported in next 45 days i.e. by 15th jan' 11 latest.
With due respect to the worthy bench of the decision makers again, this doesn' t seem workable at all. We hope and feel that the following data must have been considered by the authorities while coming out with the decision of suspension of export contracts registrations :-
1. the trend of EARC cancellations in the past
2. the general trend of LAPSE of EARC in the past 8 months
3. any fake EARC(s) entered by exporter members
India, as a second largest yarn spinner / exporter in the world is not supposed to take such drastic steps, which not only make the industry cripple for justifications before the International community but tarnish its own image, which got built / established over last 3 decades.
The only logic that apparently comes to everybody' s mind is "easing domestic cotton & cotton yarn prices", however this would be too big a financial cost for giving comfort to the domestic fabric / garment manufacturers.
Further, exporters would be in a rush to fulfil their export obligations by the stipulated dates ending 15th jan' 11 (45 days from issue date of EARC), hence its a general feeling that cotton yarn prices would not get soft till that time. In a way, its doing no good to the domestic converters hence defeating the very purpose of the policy changes. We have taken a step putting the reputation of our country at a stake, just to appease the farmers and domestic convertors.
While we do acknowledge soaring cotton yarn prices in several key markets in INDIA as well as around the world as a UNREASONABLE thing and empathize with fellow industry men, still do not understand "INDIA' S INCOMPETENCE" (despite having a sizeable resorce of raw cotton, man power and spinning) as a part of GLOBAL textile supply chain, when our competitors i.e. yarn convertors / garmenters in CHINA, EUROPE, BANGLADESH, BRASIL were able to absorb the high cost of raw materials.
Looking at the situation from the other side, with the recent policy, the entire benefit would go to our competitors (
The repercussions of our new Govt. policy have already come into existence :-
- our competitors (
- As expected, on 2nd dec' 10
Its a known fact that India, as a country has never been so aggressive / competitive in fabrics / garments like China, Bangladesh, Srilanka for various reasons, however being a agro-industrial economy have been maintaining our grip to the international markets for raw materials i.e. raw cotton and cotton yarns, but with the present erratic policy changes, we are afraid, might lose our edge as a reliable spinner of cotton yarns.
The very purpose of this communication is to create a common platform of awareness amongst fellow community members, with a pure intention that our competitive edge as a country does not get eroded.
We would urge all our valued members to please forward this to all the concerned in their chain, create a common voice for bringing a change which is beneficial for the "textile industry" as a whole. Any kind of inconvenience caused to any person / organisation in general is highly regretted.
Best Regards
RAHUL MEHTA
M. R. TEXTILES
56,
Email: rahul.mrtextiles@gmail.com
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