FIEO urges Indian govt for relief package for exporters

13 Apr '20

1 min read

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With over half of the orders cancelled and a gloomy future, 15 million job losses are expected in the Indian exports sector along with rising non-performing assets (NPAs) among exporting units, badly affecting the economy, according to the Federation of Indian Exporters Organisations (FIEO), which recently urged the government for a relief package for exporters.

FIEO president Sharad Kumar Saraf said in a press release that if factories are not allowed to work with a minimum workforce, many of them will suffer irreparable losses, bringing them to the brink of closure.

FIEO suggested the government to allow exports-related manufacturing to start immediately with a minimum workforce adhering to safety, sanitization and social distancing norms. It also requested interest-free working capital term loan to exporters to cover the cost of wages, rental and utilities.

Apart from this, Employees Provident Fund and Employees State Insurance Scheme waiver is needed for three months beginning March. And pre- and post-shipment credit need to be extended by 90-180 days on their maturity, forward cover should be rolled over without interest and penalty, interest equalisation benefits should be extended, FIEO recommended.

Fibre2Fashion News Desk (DS)

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