Euro to bring down transaction cost for Indian exporters: The common European Union currency, Euro, is expected to bring down the transaction costs for Indian textile exports by around 10 per cent. Besides, the Euro will also go a long way in smoothening the transactions. This will be possible mainly because with only one currency, the exporters will not have to face exchange risks thus eliminating the hedging costs which constitute around two per cent of the total transaction cost in the case of small exporters. Moreover, bank rates will come down, because banks would have to maintain lower margins. This is expected to further bring down the costs for exporters. This will play an important role especially in case of transactions involving two or more countries, where the exporter would not have to face any differences in buying and selling of currencies. Moreover bank commissions are also likely to come down."

Inter-ministerial group to formulate VRS for NTC mills: An inter-ministerial group of officials will work out an attractive voluntary retirement scheme for the National Textile Corporation (NTC) workers as part of the government's efforts to revive the sick mills. The group will submit its report by mid-September, said the union textiles minister Kashiram Rana. He said the measure was aimed at resolving the long-pending sickness in NTC mills. A solution has been eluding as the government was not able to evolve an attractive VRS package to effect closure of unviable units and the Maharashtra government's delay in clearing sale of excess NTC lands in Mumbai. The package is expected to be similar to the one given by the Gujarat government which helped turn around sick mills. The Gujarat package, which evoked a favourable response from trade unions offered textile workers financial benefits amounting to 60 days wages for every year of service.

TN cotton merchants threaten indefinite fast: The Tamil Nadu Cotton Ginning Pressing Traders and Growers Federation has threatened to launch an indefinite fast in Chennai if the dues of the cotton merchants from the cooperative spinning mills are not cleared by the government. M Appuswamy, federation president said that about seven cooperative spinning mills in the state under the department of handlooms have run up dues worth nearly Rs 9 crore in the last four years for the cotton purchased by them. This has caused acute hardship to the cotton growers and merchants with some of them resorting to suicides. The state chief minister has given an assurance that the overdue amount towards purchase of cotton by the cooperative spinning mills would be cleared early.

More jute mills to join IJMA fold: Major jute mills in the country are planning to return to the Indian Jute Mills Association (IJMA) fold. According to these mills, this move will help strengthen the association in taking up issues affecting the industry. The mills are showing keen interest in IJMA and has formed a group of new IJMA office bearers for 1998-99 elected at the business sessions of the association's annual general meeting held in Calcutta. For the last few years, IJMA has been holding its annual general meeting without any fanfare. Sanjay Kajaria has been elected the new chairman.

Saree printing units of Varanasi asked to close down: The Allahabad high court has directed saree printing units at Varanasi in Uttar Pradesh to close down till they set up effluent treatment plants to check pollution. The court also directed the dyeing units in Mirzapur district to set up treatment plants and get it verified by the UP Pollution Control Board. The court asked the pollution control board to expedite the process of issuing fitness certificates to the units. The petition pleaded the court to declare the Ganga riverbank a `no development zone' and clear it of all illegal dwellings.

ICMF delegation meet finance minister: The Indian Cotton Mills Federation (ICMF) delegation has requested the finance minister to initiate immediate measures to arrest the deteriorating situation in the textile industry. The delegation stressed that rampant excise evasion by the unorganised sector was the root cause for decline in the fortunes of the organised mill sector. It asked for the excise duty based on stentering machine be expanded to cover all processing factories including those processing cotton fabrics and the composite mills. If the duty is retained for unorganised processing mills, the delegation urged the finance minister to lower excise duty rates for processed fabric of composite mills from 20 per cent to 9 per cent for cotton fabrics and to 14 per cent for blended/man-made fabrics. On blended/man-made spun yarn, the delegation requested for a 20.7 per cent reduction.

Stamping on imported textiles mandatory: The textile industry's long standing demand for stamping the imported fabrics and made-ups was met last month and a notification was issued by the ministry of textiles. It said that no person shall offer or store for sale any tops, yarn and/or cloth with fake or misleading markings or without statutory markings, irrespective of whether it is manufactured in India or imported. If any person/ dealer having found offering or storing for sale any tops, yarn and cloth without markings or misleading markings shall be prosecuted as per the provision of the Essential Commodities Act (ECA), 1955. Such goods found without statutory markings or fake markings would be sealed according to the ECA, 1955.

Hardselling for Indian garment sector at Japan: Indian embassy and International Trade Promotion Organisation (ITPO) organised a garment fair and a seminar in Tokyo to attract Japanese investment in Indian garment sector. Though such interaction is not new, this is the first time that the textile commissioner visited Japan to hardsell the idea of investment in Indian garment sector. The seminar was attended by 55-60 delegates from Japan - all top executives from leading Japanese business houses. There was very enthusiastic response from the Japanese corporates according to the textile commissioner BC Khatua who observed that since Japanese industry is going slack, they need avenues to invest their funds and India suits their needs. India should make most out of this opportunity. It will take some time to spell out this interest in concrete investment proposals, says commissioner.

Extention service only after calamity strikes: Neither the extension service from the agriculture department nor the scientists from the agricultural universities interact with the farmers to provide necessary instruction on growing cotton, according to a survey carried out by a private trading house. It is only after the onset of some disease or pest attack that the agricultural scientist normally give advice to the farmers. The farmers receive no specific advice from either the scientists or the government agencies on matters relating to sowing and varieties to be sown, fertilisers and pesticides. Agreeing to these examples the textile commissioner BC Khatua feels that commitment on the part of field officers and the extention workers is very low. He felt that the whole machinery needs to be geared up inculcate the sense of duty towards a more proactive role among the field staff, says commissioner.