Home / Knowledge / News / Apparel/Garments / GEA utters concern over withdrawal of export Sops
GEA utters concern over withdrawal of export Sops
10
Oct '08
Mr. Surinder Anand, Executive Secretary, Garments Exporters Association has expressed serious concern on the recent withdrawal of some of the export sops earlier granted to exporters.

He further said that the interest rate subvention on export credit and higher duty drawback and DEPB rates should have continued because of steep hike in the cost of production of exporting units which is still going higher. The recent steep hike of about 40 per cent in the Minimum Support Price of cotton would lead to further increase in the input manufacturing cost of exporters.

The poor performance of exports during the year 2007-08 and uncertainty about the future performance reveals a very gloomy picture. The garments exporters are going through a serious crisis which is threatening their very existence. Exporters have been weighed down by serious financial burdens resulting directly from the fiscal measures of the Government.

The increasing input costs, hardening of interest rate and unfavourable credit policy, high transaction cost, poor infrastructure, rigid and outdated labour laws, high power cost and frequent power cuts, increasing cost of wages and the slow down of overseas markets are some of the difficulties being faced by exporters which should be mitigated to the extent possible and a long term solution should be finalized for the efficient functioning of exporters.

The global currency market more particularly Indian currency has moved in unexpected way during the last one year. The appreciation in the value of rupee against dollar was very sharp and significant and the depreciation is also very steep and unexpected.

The exporters would have to face the current violent situation in the exchange rate market as uncertainty about the future rates continues. Many exporters, who tried to hedge their currency risk by executing forex derivatives contracts with banks, suffered huge losses as they were not experienced in finalizing such contracts with the banks and were expecting only minor variations in the value of rupee.

The depreciation of the rupee will not benefit in the short run as most of the overseas contracts have already been finalised by the exporters. The recent slow down in the US, E.U and other overseas market has affected the realization from overseas buyers who are now insisting on discounts after the depreciation of the rupee.

On the other hand Government has already withdrawn some of the benefits which were granted when rupee appreciated last year. GEA has, therefore, requested the Government to continue with the export sops including the interest rates subvention and higher duty drawback rates at least till 31st March, 2009.

To combat the fluctuation in the value of rupee a careful assessment and close monitoring of the exchange rate should be undertaken by the RBI to ensure that financial flows do not adversely affect the exporters or importers. Our exchange rate policy should be guided by careful monitoring of exchange rate by the RBI.

Infact, the time has now come when, RBI should intervene more decisively in the currency market to curb undesirable movements. There is an urgent need to make sincere and serious efforts to ensure financial stability in the external sector along with the much emphasized need for price stability in the domestic sector. The sudden and sharp fluctuation in the exchange rate is good neither for the importers nor for the exporters.

GARMENTS EXPORTERS ASSOCIATION


Must ReadView All

AEPC concern over apparel exports fall; envoys meet CEA

Apparel/Garments | On 17th Nov 2017

AEPC concern over apparel exports fall; envoys meet CEA

India’s Apparel Export Promotion Council (AEPC) has expressed concern ...

Moody's improves India's rating

Textiles | On 17th Nov 2017

Moody's improves India's rating

Moody's Investors Service has upgraded the Indian Government’s local...

Sweden in talks with Birlas for smart textiles project

Textiles | On 17th Nov 2017

Sweden in talks with Birlas for smart textiles project

Sweden is seeking a collaborative project with the Aditya Birla Group ...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ashok Desai
Bombay Textile Research Association

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

Marcel Alberts
Eurofibers

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search