Subramanian felt exports of in-vogue speciality and outer garments could be stepped up, while generally lauding the country's shipped products. He exhorted local mills to supply materials at competitive rates so that textile firms find it easier to penetrate domestic and international markets.

Earlier, association president RK Dalmia said the industry was passing through a difficult phase owing to recessionary conditions. He singled out the composite sector's plight, saying it was even more "precarious" with good track-record millsincurring heavy losses during the last two years. He cited a statistic: By 1997-end, 213 mills -- comprising 121 spinning and 92 composite mills -- had pulled down their shutters, which roughly translated into 5.53 million idle spindles and over 54,000 closed looms. He said He said import restrictions on 83 additional items, including dyed-yarn, printed-cotton, blended and man-made fabrics, bed-linen and toilet- and kitchen-linen would go from the year-end. The country, he said, would have to brace itself up for cheap exports from south-east Asia and China. He said the European Union (EU) move to re-impose anti-dumping duty on unbleached cotton fabric would hurt the local industry.

"This is the third time the EU has imposed anti-dumping duty on the same product. Earlier, it had withdrawn the duty twice, owing to New Delhi's effective lobbying. But this time, the imposition assumes significance as it follows the clamping of definitive duties on bed-linen," he said. He said the industry should be providedlow-interest funds from the Technology Upgradation Fund to speed up the sector's modernisation. Duty-fee weaving- and processing- machines imports should also be allowed, he said.