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

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

C Dhandayuthapani

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

Suresh P Bagrecha

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Silke Brand-Kirsch
Schlegel und Partner

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

Marcel Alberts
Eurofibers

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Wendell Rodricks
Wendell Rodricks

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

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

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

October 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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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