The combined export target for cotton fabrics and made-ups for 1999-2000 was the same as this year, but actually these exports amounted to just $2,104.92 million. Under this situation it was not possible to raise the target for the current year.

As pruning of the target might have created a bad impression, the target for 2000-01 was again kept at $2,400 million. But it is almost taken for granted that it might be missed again.

Our exports of cotton fabrics have been slowly receding in recent years. The export amount for 1997-98 was $1,111.66 million, $1,100.73 million for 1998-99 and $1,038.94 million for 1999-2000.

In April, exports of cotton fabrics have again shown a downtrend with shipments amounting to $96.83 million, against $100.35 million in the March.According to leading exporters, India is being priced out in the overseas markets, particularly in Europe.

Countries like Estonia, Russia, Egypt, Turkey and even some from Africa are offering stiff competition and selling their fabrics at 5 per cent to 10 per cent below our rates in some cases. Even in Asian markets other countries are able to offer better quality fabrics at very competitive rates.

Quality improvement, comparable to world standards, requires complete modernisation of our mill industry. But the textile ministry seems to be trying to achieve modernisation with outdated machinery which are rejected by some developed countries.

The Technological Upgradation Fund Scheme allows the import of machinery which is five to 10 years old. This provides a dumping ground to the developed countries for their outdated machinery. Such a policy is based on a questionable assumption that there can be no technological improvements in the next five to 10 years.

Exporters also point out that the European markets at present are far from encouraging. This is also clear from the need of takers for allocations of exports to European countries under the FCSC scheme.

One can still get for the asking, exports quotas for yarn, cotton fabrics, grey/bld, and other fabrics, terry towels, bed linen and linen for table, kitchen and toilets. Also quotas are still available under the FCFS system for exports to the US and Canada.

According to export trade circles, price realisations in the export markets remain depressed though cotton prices have considerably firmed up of late. They explain that there is considerable price lag between the increase in cotton prices and those for fabrics. Actual average price realisations for mill made grey fabrics, in the first four months of 2000, have declined to $0.53 from $0.62 per square metre. For processed mill made fabrics, this has come down to $0.98 from $0.96. Powerloom grey fabrics fetch unchanged at $0.18 per square metre, while powerloom processed fabrics realise about $0.58 against $0.59 per square metre.

Price realisations have improved for knitted fabrics from $0.59 per square metre to $0.65. Cotton yarn price realisations in the first four months of 2000 have averaged just $2.74 per kg,against $2.85 per kg in the same period in 1999. In fact 2000-01 has made a dull start with the overall shipments in April 2000 being somewhat lower at $339.45 million, against $341.84 million in Mar ch.

Exporters feel that if we want to push up our textile exports, we shall have to be competitive not only in price but also in quality. But it is rather unfortunate that most of our textile mills are ill-equipped to meet quality standards demanded by overseas buyers, they argue.