Speaking to the chiefs of export promotion councils (EPCs) of different segments, Rana said total textile exports stood at $3 billion (Rs 12,766 crore).

With the phasing out of the quota system by 2004, stage has been set for the market forces to determine success in the global market, the minister said. He emphasised the strengthening of market intelligence as well as of the reporting system.

The EPC chiefs had come to see the minister to apprise him of the problems faced by them. They also discussed the prospects of textile exports from the country, especially in the regime after the multi-fibre agreement (MFA), i.e., after 2004.

Apparel Export Promotion Council chairman BB Goyal requested the textile minister to lower the zero-duty import limit under the EPCG (export promotion capital goods) scheme from Rs 1 crore toRs 50 lakh. He suggested that model processing houses should be encouraged by the government by providing with some benefit. He also called for an across-the-board system of taxation in all states.

The chief of Texprocil--an EPC dealing with exports of cotton yarn, fabrics and made-ups--suggested that export of made-ups should be treated at par with the exports of readymade garments as regards DEPB and other duty drawback benefits.

The export of made-ups from the country, which is nine per cent of the total world trade, could even go up to 50 per cent, the Texprocil chief said.

The chairman of the Powerloom Development and Export Promotion Council brought to the notice of the minister the fact that powerloom exports have been adversely affected by the recent rationalisation of the duty structure by the finance ministry, which led to an increase of three per cent in the excise duty.