Home / Knowledge / News / Textiles / SIMA appeals to extend interest subvention policy
SIMA appeals to extend interest subvention policy
13
Aug '08
The Reserve Bank of India had granted incentives to the exporting community by continuing the interest subvention on export credit by one more year till March 31, 2009 and extended the ceiling on interest rates upto October 31, 2008 to compensate the impact of rupee appreciation against US dollar.

Consequent to the strengthening of US dollar, the RBI has announced terminating interest subvention benefit with effect from September 30, 2008. The Government had also marginally increased the duty drawback rates to compensate additional duty paid by the exporting community due to rupee appreciation. Now, there is a move to rationalise the duty drawback rates also.

Dr.K.V.Srinivasan, Chairman, the Southern India Mills' Association (SIMA), has stated that the proposed move would be detrimental for the health of the textile industry and it would be a last straw on the camel's back and would totally paralyse the performance of the industry leading to closure and job losses to millions of people in the country.

Dr.Srinivasan has added that the textile industry has been passing through an unprecedented recession due to very many factors like 45% increase in raw material cost, doubling of bank interest rates, abnormal increase in transport and fuel costs, etc. He has further said that the major textile States like Tamil Nadu, Andhra Pradesh, Maharashtra etc., are facing severe power crisis.

Dr.Srinivasan has pointed out that Tamil Nadu, the hub for the textile business, accounting for one-third of the textile business size has been facing severe power shortage to the tune of 35 to 40%.

SIMA Chief has said that there is a short supply of High Speed Diesel oil and the Oil Companies are rationing and restricting the quantity to 80% of the previous year consumption and in fact, totally stopped supplying HSD oil to the Export Oriented Units and the units in Special Economic Zones.

Therefore, SIMA Chief has appealed to the Centre to continue the export incentive of interest subvention (on pre-shipment rupee credit upto 180 days and post-shipment rupee export credit upto 90 days stipulated at BPLR minus 2.5%) and the duty drawback rate benefits at the current levels for the rest of the financial year to sustain the export competitiveness of the Indian textile industry.

SIMA Chairman has stated that due to the economic slow down in the western countries and the increased inflation in the domestic market, the textile industry is not able to pass on the increased cost of inputs to the consumers.

He has added that there has been a drop in the yarn price during the last few days. Dr.Srinivasan has pointed out that the competing countries like China and Pakistan have increased the export incentives for the textile industry to sustain the export competitiveness.

He has said that the R&D assistance provided to the textile industry long back has now been reintroduced by Pakistan and China has increased the VAT refund (like duty drawback in our country) from 9 to 13% for synthetic textile products and from 11 to 13% for other products during last week.

Dr.Srinivasan has urged the Centre to continue the proactive steps taken by the UPA Government till the end of the financial year and rescue the mother industry at this crucial stage in order to avoid export deceleration, closure of units and massive loss of employment opportunities in the country.

Southern India Mills' Association (Sima)


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Pinkesh Jain
Everflow Petrofils Ltd

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

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Abhishek Pachauri

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

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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