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2nd Stimulus Package will not support textile exports, TEXPROCIL Chairman
05
Jan '09
Shri V. S. Velayutham, Chairman, Texprocil
Shri V. S. Velayutham, Chairman, Texprocil
The Government recently announced an additional package to stimulate the economy. Giving his reactions to the package, Shri V. S. Velayutham, Chairman, The Cotton Textiles Export Promotion Council (Texprocil) in a statement, said that the package has been disappointing, as it does not contain anything to stimulate the slugging exports in the textile sector. The restoration of DEPB rates to pre-November 2008 levels does not benefit the exporters of cotton textile products but would only benefit a few items.

As regards the Duty Drawback rates he pointed out that they were disappointing and did not meet industry's expectations as only certain anomalies were rectified whereas Industry has been asking for an increase of 2% over the pre-September 2008 rates. On the other hand, competing countries like China have pro-actively increased tax rebates from 13% to 17% in the year 2008 in order to support growth of labour intensive sectors. Unfortunately, unlike these Governments the Government of India had been slow in responding to the crisis.

He also pointed out that the industry's demand for restoration of subvention of remaining 2% in interest rates on pre & post shipment credit has also not been met. It is necessary that the cotton textiles industry also should be provided credit at 7% along the lines of cotton, which is entitled to receive this credit being an agricultural commodity, he added. Further, the industry's request for a moratorium on term loans for 2 years has also not been considered.

Mr. Velayutham, wondered whether tangible assistance from the Government would be forthcoming only after the hard won markets by the exporters are lost forever and textile exports are virtually wiped out from the country. He appealed to the Hon'ble Prime Minister to personally intervene in the matter and save the textile industry from acute distress during these trying times by announcing a special package taking into account its requirement for timely credits, cost of raw material and manufacturing.

The Cotton Textiles Export Promotion Council

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