Textile quota

28 Jul, 2004

The efforts of exporters to export more are being sabotaged by the greedy speculators. The Commerce Ministry and the EPB should keep track of what's happening to the quota market. The EU quota market, especially cat. 4 and cat. 5, made a sudden jump in May and June from Rs 60 per dozen to now Rs 380 per dozen.
This is due to the rumour that the instructions of the Commerce Ministry to allow basket quota - extra flexibility and to allow over-programming at the end of May 2004 have not been acted upon till now.
Nobody knows why and when this will be notified. Meanwhile, the speculators are minting money and it is anybody's guess who else may be involved in this racket.
And the exporters are losing financially as they have to buy the quota to fulfil their commitments. Can anybody take action in this regard?

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