"We are completely in the dark about the fate of the pending 3,500 tonnes of EFQ and the government's indecision is costing the textile and garment exporters severe loss," Garment Exporters Association (GEA) president, Rakesh Vaid, said in an exclusive interview with The Financial Express.

Despite India ratifying its tariff lines as per the demands by the EU, the entire export quota has not been pending for release.

There has been a `partial granting' of the EFQ for textiles which is expected to allow India to export an additional 3,500 tonnes of textiles and clothing. This could be increased to 8,000 tonnes in future.

India had demanded 8,000 tonnes under the EFQ of which 4,500 tonnes have been approved so far but the rest of the 3,500 tonnes is still awaiting clearance even as the EU has registered the pending order.

Officials in the Union textiles ministry said that the Government is in regular negotiation with the EU in order to get the remaining 3,500 tonnes of the EFQ released at the earliest.

"We will continue negotiations to get the remaining before the end of the year," said highly placed source in the textile ministry.India has been demanding flexibility under the EFQ in order to enable it to interchange between slow and fast moving goods as per conditions in the international market.

In fact, the EU had agreed to enhance India's quota for textiles and clothing, which is expected to increase exports by about Rs 300 crore. They have promised more flexibility with binding tariffs.

"But this is only a soother, the Government is giving us for last so many months but there has been no progress at all," Apparel Exporters a Manufacturers Association (AEMA) president, Vinod Chopra said .

India was also trying to push for release of the EFQ for 1998 and 1999 but officially there has been no system of carrying forward the backlog of the previous years' quotas.

However, the Government has assured that it was trying to get the EU to consider releasing the backlogs in the coming round of discussions.The tariff regime for textile and clothing continues to be an area of contention between the EU and India with the EU trade representatives pointing out that India was `not totally compliant' to the former's tariff regimes.

Many international markets including the US feel that the specific duties prevailing in India are too high and have called for further reductions.Exporters are already facing a grim situation with the removal of quotas by March 2001 under the WTO. The sector in fact has called for provision by the Government of highly subsidised capital goods so that the industry gears up to the challenge that is set to emerge in the coming months.

The crux of the matterTextiles exporters fears Rs 150-cr loss over delay in securing Rs 3,500 tonnes of EFQ
Textile ministry officials say Centre is talking with the EU to sort out the issue before the year-end

Many countries including US say that specific duties in India are too high and have called for further reductions
Exporters are facing a grim situation with the removal of quotas by March 2001 under the WTO