Garment exporters in Tiruppur have appealed to Union Finance Minister to announce measures that will provide financial support to the exporting units.

In a memorandum to the Finance Minister, the Tiruppur Exporters’ Association (TEA) president Raja M. Shanmugham said that major European countries have gone into lockdown. In India, two month lockdown last year had resulted in hike in raw material prices. These factors have affected funds availability to Micro, Small and Medium-scale Enterprises (MSMEs) in the garment sector.

Hence, the government should provide additional 20 % credit outstanding under the Emergency Credit Line Guarantee Scheme to garment units as done to hospitality and tourism sectors. The labour-intensive garment sector is going through financial stress and hence, its needs additional credit support. The Interest Equalisation Scheme, which was extended till June 30, should be extended for two years as the interest rates are high now. Further, the Remission of Duties and Taxes on Export Products scheme, which is a WTO compatible scheme, was announced with effect from January 1. But, the rates are yet to be announced and the units have not been reimbursed levies such as electricity tax, Mandi tax, GST on petroleum products, etc. “The non-disbursement of RODTEP is also causing liquidity crisis,” he said.

Published On : 19-04-2021

Source : The Hindu