The continuing appreciation of the rupee vis-a-vis American dollar is telling on the garment industry''s export performance. On an average, it has been suffering a loss of Rs 1 lakh on each export consignment valued at 1 million during the past few months. This coupled with the sharp fall in unit value realisation from exports to the US, a major destination, may make it difficult for the industry to maintain its share in the global market after abolition of quotas by December 31, 2004, says Apparel Export Promotion Council (AEPC).

Under the existing quota regime, the industry''s share in the global market has improved from 51.20 per cent in 1999-00 to 60.40 per cent in 2000-01 and to 67.10 per cent in 2001-02. But the industry''s first major concern will be how to maintain its share in 2005 with fierce competition emerging from China and others, council says.