Millennium Post

Apparel body seeks hike in retail sourcing to 50 per cent

Days after the government relaxed FDI norms in the retail sector, the country's apex apparel body AEPC on Tuesday said that foreign retailers must be made to source up to 50 per cent from MSMEs to protect domestic manufacturers.

Apparel Export Promotion Council [AEPC] President A Sakthivel said he will write to the Commerce and Industry Minister Anand Sharma regarding the issue.

'If we don't put mandatory sourcing conditions then the foreign retailers will buy garment and apparels from Bangladesh and sell in their stores here as India allows duty free imports of textile products from that country. It will severely impact domestic industry and manufacturers,' Sakthivel said. Last Friday, the government relaxed the 30 per cent mandatory sourcing condition for foreign players in single brand retail. However, for multi-brand retail, global retailers will have to source 30 per cent from micro, small and medium enterprises [MSMEs].

'We will ask the government to increase this 30 per cent to 50 per cent. It will help domestic industry local manufacturing,' he said.    
PTI

PTI

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