The sources complain that a niggardly export quota of just 10 per cent is being given by the authorities to the powerloom sector in complete disregard of the volume of its reduction which as the accompanying table shows is far bigger than that of even the mill sector.

The industry has been representing to the government that the allocation of the manufacturers's quota to it should be raised at least to 25 per cent, but the authorities remain indifferent even to this modest request.

The powerloom industry suffers from some other problems as well. For instance, the union budget jacked up the excise duty on cotton yarn to 9.2 per cent from 5.75 per cent.

The industry is of the view that the rate of excise duty drawback onexports of grey fabrics should have been consequently raised to 8.00 per cent, but it remains at 5.5 per cent. Likewise, in the case of processed fabrics, it should have been raised to 8.00 per cent but it remains at 6.00 per cent. This actually provides a disincentive instead of incentive for exports.

Another disincentive for export is provided through modification of the DEPB scheme. Earlier the customs authorities could ask for various documents for verification where the rate for the purpose was more than 15 per cent. This threshold has been brought down to 10 per cent. This has led to harassment of small exporters.

In the case of incentive in the form of issue of Special Import Licences (SILs), small powerloom exporters stand discriminated, inasmuch as this incentive is made available mainly to large exporters. Small exporters, therefore, stand at a competitive disadvantage.

Industry circles are of the view that this incentive should be made available to all exporters, irrespective of whether theyare big or small.

A delegation headed by chairman, Powerloom Development & Export Promotion Council (PDEXCIL), MS Nathivanan, recently met secretary, ministry of textiles, Shyamal Ghosh and appraised him of the problems of the powerloom sector as also of the plans of the PDEXCIL to set up training and designing centres in the major powerloom centres.

The plans at upgrading the looms to enable the weavers to know the working of the various attachments fixed to the looms were also conveyed to the textile secretary.

The PDEXCIL proposal to set up a marketing cell to create awareness about the need to export and to provide information about the requirement of export markets to its members who produce export quality fabrics, but are not participating in exports at present.

The council proposes to intimate action to promote exports in a big way. It is proposed to engage marketing consultant and create packages both for new entrants into the export field as well as for existing exporters, to provide themuseful information based on market studies, in regard to market requirements, quality standards, etc.