Home / Knowledge / News / Apparel/Garments / AEPC demands a separate chapter for export sector
AEPC demands a separate chapter for export sector
15
Mar '12
The Railway Budget 2012-13 announced, that recommended a hike in rail freight is being seen as another jolt to Indian apparel exporting sector after the removal of the prohibition of cotton exports. Chairman Apparel Export Promotion Council, Dr. A. Sakthivel feels that, “The entire industry is going to face the brunt of this freight hike and it will impact the total profitability too.”

“The Indian garment sector is already suffering due to the debt crisis in its major markets, EU and USA. This hike will add on to the pressure of the Indian garment exporters and will have major cost implications on the industry,” he added.

Besides this, the RBI Credit policy has been disappointing too as it has not given any relief to the garment exporters who are paying interest above 12% for packing and credit. "The prevailing interest rates are very high and are posing a threat to India's competitiveness," he further added.

As per the notification released by RBI, though there has been a reduction in the CRR, repo rate and bank rate remain unchanged. "AEPC was looking forward to a reduction in interest rate and some special announcement regarding interest subvention for knitwear and garment exports. However, the RBI Credit policy did not address this. We request the government to look into the matter, “Dr. Sakthivel added.

AEPC is in the view that in order to protect the export sector from increasing credit rates, a separate chapter for export sector is required in Monetary Policy and the export sector should be delinked with the base rate system being followed by the banks.

Dr. A. Sakthivel feels that as the base rate is the minimum lending rate, pre shipment and post shipment export credit in Indian Rupee has to be given at the Base Rate itself. Till a separate chapter for export is announced, the Bank credit rate given to exporters may be fixed at 7.5% as the interest rates prevailing in our competing Countries are lower than our banks rates.

However, the mid-quarter Monetary Policy has not addressed this.

Incorporated in 1978, Apparel Export Promotion Council (AEPC) is the official body of garment exporters that provides invaluable assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments.

Apparel Export Promotion Council

Must ReadView All

Apparel/Garments | On 6th Dec 2016

Alibaba merges Juhuasuan with Tmall.com

In a business reorganisation, aimed at making it easier for merchants ...

Courtesy: The Fashion Awards 2016

Fashion | On 6th Dec 2016

Fashion Awards: Alexander McQueen is brand of the year

Alexander McQueen received the brand of the year award at the Fashion ...

Textiles | On 6th Dec 2016

Indonesian textile sector urges govt to regulate imports

The Indonesian textile industry urged its government to regulate...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search