In Brief

Warehouse to be opened at Antwerp in Jan

Tirupur Exporters’ Association (TEA) promoted warehouse at Antwerp in Belgium would become functional in January next year. Work on the warehouse, for stocking knitwear and garments and for local sales during the lean season of July and August, were in progress and exporters would start stocking by Jan 2006, the TEA president, Mr A Sakthivel told reporters here. The warehouse is a joint venure between TEA and St Johs. Stating that the warehouse, strategically located, would benefit the exporters, particularly to meet the immediate requirements of local buyers, Mr Sakthivel said that exporters could also send their articles within 24 hours to the buyers of Germany, Brazil, France and to some extent in Spain. Depending on the success of the Antwerp warehouse, TEA also plans to open warehouses near New York and San Fransisco to cater to the immediate needs of the east coast and west coast regions respectively, he said.

Levies, labour laws hinder apparel growth

With safeguards against China’s textile and clothing exports to the US and Europe, Indian exports to those countries have shown a 30 and 22 per cent increase respectively during the first six months of the year, the Apparel Export Promotion Council (AEPC) chairman, Mr A Sakthivel said. US imports of T-shirts have grown by 45 per cent briefs by 50 per cent, and if this trend continues, Indian exporters have a good opportunity to outsmart China and capture both the US and European markets by 2009, he said. However, the increased duty drawback, fringe benefit tax and high excise duty on synthetic and polyester yarns have added to the production cost, resulting in escalated price for the finished products in India, he observed. Moreover, nine per cent concessional advantage given to neighbouring Bangladesh and Sri Lanka, the former being an underdeveloped country and the latter being Tsunami-ravaged nation, was affecting Indian manufacturers, who were forced to reduce the prices, since buyers have started dictating terms in the quota free regime, Mr Sakthivel said.