Apparel exporters reel under severe order crunch, CIAe

11 Oct '07

4 min read

Indian government should realise that apparel exporters are finding difficult to sustain current production operation and would reduce the work-force. So there is no question of additional employment in the future, he said.

The UPA government should seriously consider that apparel export sector, which has tremendous potential for employment, investments and growth should be supported for benefit of the industry and country at large or should it be treated as an orphan and left to die, he questioned.

Mr. J. B. Jain, Managing Director of Rupam Exports informed that the so-called relief package which the government claims to have provided the exporters is an eye-wash. The higher drawback rates were justified considering the refund of duties which need to be reimbursed to the exporters.

Indian government is leaving no stone unturned to ensure that we are out of business. It has hit one more nail in our coffin by hiking the minimum wages of tailoring units.

We now have to shell out Rs. 4300 as minimum wages to workers which is nearly 25% higher when compared to Rs. 3400 paid as minimum wages till may 2007 as said by J.B. Jain.

Service Tax is another tax which is has given a severe blow to the exporting community. No doubt, the government has waived of service tax on transport of goods from dock to dry dock.

However, these waivers are of no use to the Apparel exporters as the main area which needs the government attention is the service tax on Commission and Air and Sea freight which is still not addresses said Mr.Goyal

Apparel exporters have no future, points out Mr. Prakash Thakkar, Managing Director, Jal Exports. “I am willing to close down. Infact, I have started to reduce my business, reduce my staff to ensure a smooth exit from the apparel export business,” he says.

This is the worst period I have ever seen in my 27 years of business and I believe the worst is yet to come, says Mr. Thakkar.

Generally in the month of September, apparel exporters have order in-hand till March-end. However, this year orders have tried up. Exporters do not have order till October-end, he informs.

The Apparel & Textile Industry is going through its worst times and now it is not the survival of the exports but of the Industry says Mr.Goyal

Confederation of Indian Apparel Exporters

More Confederation of Indian Apparel Exporters News... More Apparel/Garments News - India...