Coimbatore, Apr 16 (PTI) Tirupur Exporters Association (TEA) on Friday appealed to Union Finance Minister Nirmala Sitharaman to announce measures, including extension of Emergency Credit Line Guarantee Scheme to the apparel sector to help it come out of the crisis.

The government has extended ECGLS 3.0 to the hospitality and tourism sectors by providing 40 per cent of credit outstanding in February last, TEA President Raja M Shanmugham said and requested the minister to extend the scheme to the apparel sector also.

He sought extension of the scheme by providing additional 20 per cent credit outstanding similar to the one given to other sectors to help them to ease their liquidity crisis.

In a letter to the Finance Minister, Shanmugham thanked her for various financial measures to help to enhance the sector''s competitiveness and continuous support and encouragement had helped lift the exporters'' morale and take efforts to sustain in the business.

The second lockdown promulgated in countries like Germany, France and the UK from November last lead to a liquidity crisis for exporting units in Tirupur, mainly MSMEs which urgently required financial measures from the government to help overcome the ongoing crisis and sustain in the business, he said.

He further said apart from disruption in major global markets, the continuous increase of prices of yarn prices due to change in business dynamics, thanks to two months closure and partial utilisation of textile mills including rise in cotton prices had also impacted the knitwear garment sector to a great extent.

Thanking the minister for extension of Interest Equalisation Scheme for a brief period of three months till June 31, he said considering the higher interest rate, exporters requested to extend the scheme for at least for another two years which would help to workout costing effectively and also enhance the competitiveness in the global market.

Published On : 16-04-2021

Source : Devdiscourse