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Exporters want more cargo space

January 04, 2005 11:53 IST

Anticipating a 30 per cent increase in bookings in the post-quota regime, textiles exporters have approached the Shipping Ministry for additional cargo capacity to clear shipments of ready-made garments once export quotas are removed.

"The international market is highly sensitive and competitive and if shipments do not reach within the stipulated time, the exporters may lose the orders and future business too.

"In view of the tremendous increase in shipment of ready-made garments with the abolition of the quota regime, additional cargo services would be required," Sudhir Kharbanda, president of the Garments Exporters' Association said in a representation to the shipping ministry.

"We are anticipating a 30 per cent increase in our booking as the prices will come down on account of the disappearance of quota premiums from tomorrow," Surinder Anand, executive secretary, GEA said.

Anand said that the prices would also decline since transaction costs for exporters incurred on account of quota transfer or quota certification would also fall.

The revenue department has already issued a circular Customs clearances be allowed for textiles and ready-made garments destined for quota countries without the quota or export certificate for goods, which are to be shipped on or after January 1, 2005.

The association, in its representation, pointed out that exporters were facing problems because of congestion at various Indian ports and steep increase in surcharges.

The GEA said that a regulatory mechanism should be put in place to regulate the charges and practices of shipping lines, agents, freight forwarders, consolidators and Customs house agents.

Exporters also pointed out that lack of proper coordination between Customs and CONCOR authorities was also causing unnecessary delay in sending consignments to Jawaharlal Nehru Port Trust from the inland container depot at Tughlakabad and Patparganj.

Quota Quotient

  • With the end of quota regime, textile exporters expect the bookings to go up by 30 per cent
  • The exporters have sought  additional capacity for readymade garments from  the shipping ministry
  • Transaction costs will also reduce with the abolition of quota premiums and certification
  • The exporters have sought  a regulatory mechanism to coordinate the charges and practices of agents, shipping lines and Customs.
BS Economy Bureau in New Delhi
Source: