In order to step up exports, he said that the system of trade with Russia, currently followed, needs to be changed. As per the present arrangement, authorisation is given by the Russian government to the importers for import of textiles against the credit standing in favour of the Russian government in respect of defence and other materials supplied by USSR to India in the past.

As this system is not working satisfactorily he said that it would be advisable if a suitable system is adopted by giving the authority of allotment of rupee amounts to the Indian exporters, against export of goods including cotton textiles. If this system is adopted, it would be possible to increase the trade considerably with Russia, as there is substantial demand for Indiantextiles.

Commenting on the revised scheme of market development assistance (MDA), he said that although the facility under the scheme has now been extended to the exporters other than the export houses, trading houses, star trading houses, exporters in the small-scale sector having marginal export performance, would not be able to avail the facility.

As per the revised scheme, in accordance with the para 11.11(a) of the handbook of procedures, exporters who are having export performance of Rs 5 crore and above in the preceding year or Rs 2 crore and above on an average basis, during the preceding three years are only eligible to avail the facility.

Since most of the exporters from the small-scale sector are having export performance less than the above stipulated levels, they will not be able to avail the facility. This is despite the government's intention to extend the facility to the exporters other than the status holding export houses. In order to extend this facility to the small-scale exporters,he said that suitable recommendation would be made to the government, stipulating lower limit, for availing the facility. Since this is an important scheme benefiting exporters in general, he felt that the scheme needs further liberalisation.

To protect the interest of domestic industry, Mathivanan said that adequate measures need to be taken, by way of imposition of specific duties on imports of textiles. He disclosed that the council has recently submitted detailed data in response to the government's request in this regard, to enable the authorities to fix suitable specific rates on the imports,so that the indigenous textile industry is not affected on account of unrestricted imports from various quarters.

Commenting on the technology upgradation fund scheme (TUFS), the chairman said that the scheme initially would go through teething problems.

Some modifications in the scheme will have to be considered in order to ensure smooth functioning of the scheme.