Textile industry must cope with rupee appreciation - CITI
02 Oct '07
4 min read
Discussing about insignificant implementation of facilities like Technology Upgradation Funds Scheme (TUFS), the Secretary General reveals that there is a tremendous backlog in disbursement of TUFS assistance. Initially, the major problem was of funding. Now, funds have been provided by the Ministry of Finance but disbursement is still getting delayed because of the complicated procedures involved. One major issue to be sorted out is the delay on the part of FIIs and banks to supply proper and complete information stipulated by the Ministry of Textiles, while claiming funds for disbursement to borrowers.
"It is evident that the textile industry has to cope up with the rupee appreciation and for that defocusing of the US market and currency is one strategy that the industry will have to adopt. Few industry players are already looking for other markets and trying to do business in other currencies. Measures for cost cutting, innovations and branding are among other steps being attempted. Given the resilience of our dynamic entrepreneurs, export deceleration is quite likely to be a short term problem", said the CITI official.
While updating about raised Duty drawback and DEPB rates and its advantages to exporters, the Secretary General informed, "Increase in Draw Back and DEPB rates announced by Government are being implemented and will benefit exports to a limited extent. However, these rates do not take into account the duties and levies charged by State Governments and local bodies such as Municipalities. The burden of unrebated State level duties have been eroding the competitiveness of our exports and adding to the problems that exporters are currently facing."
On a happier note, Mr Nair considered that in the cotton textiles segment, exports are showing a positive growth. Cotton production has been scaling new heights consistently for the last few years. In cotton year 2007-08, production is expected to cross 310 lakh bales. The quality of our cotton has also increased substantially in recent years. The improvements in the cotton economy is bound to have a positive impact on the cotton textile sector, including its exports.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
