Textile trade eyes Chinese fabrics for re-export

The Chamber of Textile Trade & Industry (COTTI) has chalked out a plan for import of quality textile fabric from China for value addition locally and re-export to Europe, USA and other developed countries.

"With abolition of Multifibre Agreement in Textiles from April 2005 and reduction of duty to 4 per cent from 16 per cent in West Bengal, exporters can import fabrics from China to compete on the quality front because Indian mills do not produce enough quality fabric to satisfy the Rs 5000 crore West Bengal trade which exports value-added embroidered, printed, designed and stitched garments," said Arun Bhuwalka, secretary of COTTI.

A 60-member Cotti delegation will be at China's Canton Fair to tie-up with sellers and look for export opportunities.

"The idea is to form groups which would import fabric, add value and re-export," he informed.

The textile trade body is also looking at the possibility of setting up a liaison office in China to follow up on business proposal and develop new business.

At a later stage, the liaison office would also act as quality control arm of the trade body and help members source quality raw material at best prices for more aggressive re-export deals.

The delegation will meet members of other textile related associations and trade bodies in China besides senior government functionaries in Guandong province.

"Embroidery and printing skills and garments are in great demand worldwide but exporters cannot get quality fabric, and so imports from China would help overcome the problem," the secretary said.

Cotti would like to learn the Chinese way of operations and ways to achieve cost competitiveness in global markets while working in India.

China is a net importer of handloom textile, embroidered fabrics and designed fabrics for re-export.