The Indian government has been urged by the Garment Exporters Association to release new export quotas - including additional quantities for the EU and the US.

In a letter to the federal Textiles Ministry, the Garment Exporters Association said that additional quotas for both the EU and the USA would provide another opportunity for exporters to carry out orders that have had to be postponed because of the heavy premiums being quoted. 

The letter explained: "Many garment exporters had booked orders assuming that there would not be a cut-off price in any category in view of the large quantities available. Since the high cut-off prices came in various categories for the EU and the USA, many exporters were disappointed in not getting the required quotas."

According to the Asia Pulse newswire, the Garment Exporters Association has also suggested that the government should ask the Apparel Export Promotion Council to suggest second cut-off prices to optimise the utilisation of quotas and increase over-all national exports.

Opening up increased quantities would provide quotas to many comparatively new exporters, as well as existing ones. It would also ensure maximum utilisation of the quotas and avoid unnecessary hikes in quota premiums.

High prices being quoted on the First-Come-First-Serve (FCFS) quotas in certain EU and US categories mean that exporters have been unable to get the required quotas.