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TEA demands increase in interest subvention

16
Jun '10
TEA President, A.Sakthivel says thanks to the Hon'ble Minister for taking various measures pragmatically to bailout the crisis ridden knitwear garment sector and always encouraging the exporters to explore the new markets and be ready to promote the exports. The textile industry has got real boost in the past one year due to the Hon'ble Minister's full attention for the development in domestic as well as in the international market.

Tirupur knitwear garment exporters have been affected due to unprecedented rise in cotton yarn prices, increase in dyeing charges after installation of CETPs, Euro crisis and demand compression in the global market. Due to these adverse factors, the competitiveness competitiveness of our garment sector has been affected in the global market, (in the percentage terms it is in the range of 35% to 40%) and therefore, a level playing field is required to face the onslaught of competition coming from the countries like China, Bangladesh, Vietnam, Cambodia and Indonesia. Another concern is that the Bank Interest Rate in 5.23% and their currency Renminbi is also pegged against the dollar, totally insulated from the currency fluctuations.

As a measure to help the exporting sector, in the Union Budget 2010-11, the Hon'ble Union Minister of Finance Shri. Pranab Mukherjee extended 2% Interest Subvention on pre and post shipment rupee export credit for one more year, from 1st April 2010 to 31st March 2011 for specified export sectors and SME export sector.

Considering the gravity of the situation, we request the Hon'ble Minister to kindly take up the matter with Finance Ministry and help to enhance the interest subvention from 2% to 4% upto 31st March 2011 and also for specifically inclusion of the knitwear garment sector across the board in the RBI Notification for the benefit of entire knitwear export units.

TIRUPUR EXPORTERS' ASSOCIATION


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