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Journalism of Courage
CHANDIGARH, Dec 1: The dismantling of MFA (Multi-Fibre Agreement) trade quotas over the next few years would be biggest change for the textile industry.
Stating this on behalf of the CII here today, CII regional director Piyush Bahl said, the complete elimination of quotas by 2005 will bring about a upheaval in the global textile and garments trading system. These observations were made on the eve of the Texcon ’99, the third international conference on textile and clothing, being organised in the City from tomorrow. Addressing mediapersons, Bahl added, that Indian producers are already feeling the constrains and pushed into a corner.
The crisis has been exacerbated by the fact that in the post 1997 South Asian crisis, price competition among the countries has led to devaluation of currencies. On the other hand, thanks to growing regional integration and de-localisation, Indian producers are acutely conscious of being pushed out of the Western markets. The end of the quotas could lead to a free for all situation, where even the lowest cost producer wins at the lower end of the market. A CII-Roland Berger study on the Indian textile industry is slated to be released tomorrow by the Union Textile Minister Kashiram Rana. The Minister would inaugurate Texcon 99 and Textech 99.
