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Ludhiana apparel producers approach PM
08 Jun '10
2 min read
After putting their differences behind, the apparel producers of Ludhiana, had formed, MSME Garment Manufacturers Association of Ludhiana (MGMAL) and under the header of this association, they have sent a letter to the Prime Minister, informing him about the problems faced by them.
These apparel producers, who delivered orders for most of the retail chains, are suffering delayed payment from their buyers.
According to SK Jain, President of MGMAL, the aim of this association is to reduce the gap between the garment producers of Ludhiana and their good's buyers, key retail chains, so as to bring up issues with respect to the problems faced by the suppliers.
Currently, MGMAL members are irritated over the payment delays that their buyers, major retail chains, are making. In addition, they have also claimed that, the rate of interest, which is charged by the banks, is also on the higher side, therefore, not affordable by the MGMAL members.
MGMAL members claim that, banks charging one percent processing charges on loans and also charging the same amount, for renewing the existing limits, was an unjust practice.
Members demand that, banks, which have been delaying the credit of foreign allowance, should be given directives, so that they immediately credit foreign exchange allowance on receipt. This, will aid in lessening the bank's rate of interest and funds will then be available for immediate needs by the members.
More so, MSME informed that, according to them, they were not aware of any access given to the Small and Medium Enterprises (SME) to avail benefits of the various schemes that were provided by the Central government.
It was impossible for the SME's to keep track of the various schemes that were released by the MSME department, informed Jain. However, with the help of industrial associations, seminars and letters to each unit, timely inputs should be given to the MSME sector about the schemes and this could be attained with the help of a special cell, which can be created with the District Industries Centres, added Jain.
These apparel producers, who delivered orders for most of the retail chains, are suffering delayed payment from their buyers.
According to SK Jain, President of MGMAL, the aim of this association is to reduce the gap between the garment producers of Ludhiana and their good's buyers, key retail chains, so as to bring up issues with respect to the problems faced by the suppliers.
Currently, MGMAL members are irritated over the payment delays that their buyers, major retail chains, are making. In addition, they have also claimed that, the rate of interest, which is charged by the banks, is also on the higher side, therefore, not affordable by the MGMAL members.
MGMAL members claim that, banks charging one percent processing charges on loans and also charging the same amount, for renewing the existing limits, was an unjust practice.
Members demand that, banks, which have been delaying the credit of foreign allowance, should be given directives, so that they immediately credit foreign exchange allowance on receipt. This, will aid in lessening the bank's rate of interest and funds will then be available for immediate needs by the members.
More so, MSME informed that, according to them, they were not aware of any access given to the Small and Medium Enterprises (SME) to avail benefits of the various schemes that were provided by the Central government.
It was impossible for the SME's to keep track of the various schemes that were released by the MSME department, informed Jain. However, with the help of industrial associations, seminars and letters to each unit, timely inputs should be given to the MSME sector about the schemes and this could be attained with the help of a special cell, which can be created with the District Industries Centres, added Jain.
Fibre2Fashion News Desk - India
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