If one considers export performance for the first two months of 2000-01 together, one may find that the improvement has just been of the order of 2.1 per cent to 94.44 million kg compared with 92.53 million kg in the same period of the previous year. In value terms, however, there has been a slight setback of 0.08 per cent at $261.27 million, against $261.47 million in the same period of the previous year.

Exporters point out in this context that the average price realiation in May 2000 has been only $2.76 per kg, against $2.86 per kg in the same month of the earlier year. And chances of price realisations lifting up, they say, are remote looking to fierce competition in the overseas markets.

Indian exports suffer not only from price angle, but in many cases from quality and delivery angle as well. In this context they point out that there are instances, when actual loading in the ports may be delayed by two to three weeks or more, though the export consignments may be lying in the docks. Unless infrastructure facilities are improved Indian shippers are prevented for reasons beyond their control, from offering timely delivery.

If during this delay, the L/C expires it may create more trouble for the shippers unless the foreign buyer is prepared to extend it. Compare this with, say, Turkey or Estonia which can effect prompt delivery by immediately loading the cargo in trucks and rushing the goods right upto the doorstep of the buyer's godown. Overseas clients are not prepared to wait till we can offer leisurely delivery.

So far as prices are concerned, Pakistan, Turkey, Indonesia, China etc are offering keen competition in the overseas markets. Other suppliers do not have to bear transaction costs like octroi, sales tax (ST), electricity levy etc which Indian shippers have to do. Frequent representations have been made by the exporting community to provide for drawback of such costs immediately on shipment of goods. However, no decision on this subject is yet in sight. Foreign buyers make their purchases these days mostly on hand-to-mouth basis and they naturally prefer suppliers who can offer goods at competitive prices with assured delivery schedule. Indian authorities are yet to understand this situation and take appropriate measures.

Reports from abroad indicate that the markets in Japan and Taiwan are ruling easy. Prices are stagnating despite firm cotton values. Hong Kong market is also downbeat. Softer polyester prices are further affecting cotton yarn.Pakistan and China are keen competitors in the Asian markets at present. The former is said to be offering 24s double around $2.50 per kg. In European markets, Turkey and some other countries are offering stiff competition. The business outlook has thus deteriorated. Anyway July and August are mostly holiday months in quota countries. It is hoped that their fresh enquiries might start from September.

Meanwhile, applications have been invited by July 10, 2000 by the authorities concerned for allotment of export entitlements under FCFS Ready Goods System. For the next quarter even as there have been no takers for some of the undisposed of quantity for the quarter ending June 30. This indicates slackness in demand in the European markets. The Texprocil has also invited applications by August 10, 2000 for allocation of quotas under the Past Performance Entitlement (PEE) System. Some export trade circles are firmly of the view that quotas under this system should be made non-transferable. Those who are unable to show satisfactory proportionate quarterly performance should be required to surrender to the common pool their unutilised quotas from which allotments can be made to others who really require these. The present system of transferability of such quotas is based on the antiquated principle of fiefdom, and sooner it is abandoned from all sectors, the better it would be for our textile export business, itis argued.