
In a bid to push up textile exports in the post-quota regime, the ministry of textile is planning to bring bar-coding and radio frequency technologies under the ambit of the Technology Upgradation Fund TUF, which gives interest subsidies on loans used for technology upgradation in the sector.
Leading textile exporters and other players associated with bar-coding and radio frequency have had detailed meeting with the textile ministry. Based on inputs from these meetings, the textile ministry has held several rounds of meetings with the commerce ministry to work out the modalities of bringing bar-coding under TUF schemes.
Talking to The Indian Express, a senior official in the textile ministry dealing with TUF schemes said, 8216;8216;Yes, we are actively considering to bring bar-coding under TUF. Bar-coding is the first concern and we will look into radio frequency subsequently.8217;8217;
A product8217;s bar-code is a thirteen digit number along with bars. The code enables exporters, importers and consumers of shipments and products to identify the product. Bar codes help to automatically capture product movement and sales data at the wholesaler or retailer level, which are then transmited via electronic data interchange EDI to manufacturers.
Sales and inventory reports transmitted by the EDI allow manufacturers to determine which products need early replenishment based on pre-established inventory limits. The global standardisation in bar-coding allows the exporters to move their shipment across the globe without much delay. In fact, this has pushed the demand for bar-coding in the textile sector.
According to Ravi Mathur, CEO of EAN India, the organisation which ensures global standardisation in bar-coding in India, 8216;8216;Post quota, in the textile sector the demand for bar-coding has shot up. To take an example, around 300 suppliers of Wal-Mart have moved to bar-coding recently and bulk of these are in textile apart from pharmaceuticals,8217;8217; Mathur added.
Since EAN stands for European Article Numbering, this is now being changed to GS1. In the US, there was earlier Uniform Code Council while EAN, though accepted all over the globe, originated in Europe. Now, to bring in uniformity, the global standardisation will be christened as GS1.
GS1 has already in use in the rest of the world, but in India it is awaiting legal clearances from the government and will become GS1 India in a couple of months, Mathur said.
On the issue of radio frequency, which helps exporters to clear consignments and move them without being present on the spot, textile ministry officials said this can come under TUF at a later time. 8216;8216;We need to get bar- coding in first and then will look into radio frequency,8217;8217; the official added.