However, the Apparel Export Promotion Council (AEPC), which monitors the quota position on a daily basis and accordingly issues fresh quotas, has been charged by the exporters body, All India Garment Exporters and Manufacturers Association (AIGEMA), with failure to inform of the exhaustion of quota well in advance.

As a result, the exporters are worried about the shipments which may be held up or sent back from the importing country's ports. While AIGEMA alleged that the AEPC continues to issue certificates for the same categories where imports have been banned, the AEPC officials vehemently denied any such lapse on their part.

"With such large scale operations, it is not possible to reconcile thepositions" says an AEPC spokesperson adding that at times there is some wrong accounting at either ends and it takes time to rectify. Nevertheless, the AIGEMA has come down scathingly on AEPC through a letter to the textile minister Kashiram Rana saying " with all its computerised systems AEPC failed to note that the quota in Category 26 had exhausted for EU countries and it still continues to issue certifications for this very category.

It is difficult to visualise the fate of the shipments in the pipeline if EU countries maintain their hard stand and do not give import clearance." Further it says that had the AEPC monitored certifications minutely and had it taken necessary steps for quota adjustments under bilateral agreements, the situation would not have been so bleak as it is now. The letter states that lack of planning and foresight on the part of AEPC has hit the exporters hard who now face cancellation of orders and heavy loss.

About a month ago, export of yarn dyed ladies blouses under categoryUS 341-y were banned by USA as AEPC overshot the quota for 1998. Since December 11, 1998 US put embargo on gents shirts under category 340/640 and last week EU placed embargo on ladies blouses under category EU 26 besides trousers and shorts under category 306.

According to the observers, the importers generally grant additional duties or adjust it in the next year's quota but refusal to do so this year is to pressurise India to reduce import duties under WTO agreements.