Home / Knowledge / News / Apparel/Garments / AEPC Chairman raises concern over hike in repo rates
AEPC Chairman raises concern over hike in repo rates
29
Jan '14
RBI released the Third Quarter Review of Monetary Policy 2013-14 in which it made the following policy changes:

a) The policy repo rate under the liquidity adjustment facility (LAF) increased by 25 basis point from 7.75% to 8%.

b) CRR kept unchanged at 4% of net demand and time liability (NDTL)

c)Consequently, the reverse repo rate under the LAF stands adjusted at 7%, and the marginal standing facility (MSF) rate and the Bank Rate at 9%.

Reacting on the Third Quarter Review of Monetary Policy 2013-14, Mr. Virender Uppal, Chairman of AEPC, has expressed his serious concerns on increasing the repo rate by 25 basis paisa points. In his statement, Mr. Uppal said, “The garment exports despite many inhibiting factors have been surging ahead with a growth rate of 16% over the last three quarters, vis-à-vis same period last year.

“The Government expectations from Apparel exporters are even higher and they expect us to grow at over 31 % on YoY basis. The garment exporting units are expected to invest in product development and also replace the old machineries to increase their competitiveness and efficiency, and therefore, the credit needs are required to be replenished at a much lower flat rate of interest.

“In fact, AEPC has been pitching for priority sector lending for this sector and has even proposed a flat rate of 7.5% for all its credit needs under a separate chapter for exports. Any further increase in credit rates would be a body blow to the Apparel Exporters.

"Therefore, on behalf of the Industry and apparel exporting fraternity, I would urge the Ministry of Finance, Ministry of Textiles and RBI to consider our demand favourably so that, we remain competitive and the momentum of growth is also not lost.”

Mr. Uppal, expressed his concerns on the subdued economic outlook and contracting of the manufacturing activities. He said that garment sector employs highest number of workers in the manufacturing sector and the prevailing conditions might lead to loss of employment too.  Inputs cost over the recent times has escalated, which results into high costs for finished products leaving very thin margins of profit.

Apparel Exports Promotion Council

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search