Coimbatore: Tiruppur Exporters’ Association (TEA) on Monday appealed to the finance ministry to start a rupee-rouble payment mechanism with Russia.

In a letter to finance minister Nirmala Sitharaman, TEA president Raja M Shanmugham said the payments received by MSMEs in Tirupur from buyers in Russia have been stopped due to sanctions and exclusion of Russian banks from the Swift platform. Due to payment delays, MSMEs are facing operational difficulty.

Knitwear products worth 70 crore are exported to the Russian market from Tirupur every year. “Though buyers are willing to pay, they cannot complete payment due to the sanctions. 

To overcome the ongoing crisis and the uncertainty, the finance minister should intervene to commence a rupee-rouble trade mechanism with Russia to receive back exports’ proceeds,” the official said. “It will not only help MSMEs at this hour of crisis, but also help to push exports.”

Published On : 26-04-2022

Source : The Times of India