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Garment sector may face the burn of fuel price rise
07 Jun '08
2 min read
The Central Government has increased the Petrol and Diesel prices by Rs. 5/- per litre and Rs. 3/- per litre respectively (4.6.2008)
Shri. A. Sakthivel, President, TEA said though the Central Government has hiked the fuel prices due to increase in imported oil prices, the impact of this price hike will be severe to the garment manufacturing units.
He noted that the garment manufacturing units are already suffering in the power front due to unscheduled power cut observed in Tirupur in the region of 6 to 8 hours per day, which is forcing them to run their own diesel generators daily.
He pointed out that ultimately, the hike in fuel price will result in increase of cost of garment making production proportionately.
The major concern is that the garment making units are no way in a position to pass on the hiked fuel prices to buyers since the units have to be quite competitive to stay in the global market.
Shri. A.Sakthivel said that considering the gravity of the situation, the Ministry of Finance which is now working Duty Drawback rates for garments and other products should take into account the increased fuel cost and this should be factored while arriving the Duty Drawback rates for the year 2008-09.
Shri. A. Sakthivel, President, TEA said though the Central Government has hiked the fuel prices due to increase in imported oil prices, the impact of this price hike will be severe to the garment manufacturing units.
He noted that the garment manufacturing units are already suffering in the power front due to unscheduled power cut observed in Tirupur in the region of 6 to 8 hours per day, which is forcing them to run their own diesel generators daily.
He pointed out that ultimately, the hike in fuel price will result in increase of cost of garment making production proportionately.
The major concern is that the garment making units are no way in a position to pass on the hiked fuel prices to buyers since the units have to be quite competitive to stay in the global market.
Shri. A.Sakthivel said that considering the gravity of the situation, the Ministry of Finance which is now working Duty Drawback rates for garments and other products should take into account the increased fuel cost and this should be factored while arriving the Duty Drawback rates for the year 2008-09.
Tirupur Exporters' Association
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