As the garment industry continues to face lots of challenges, apparel exporters have urged the Government to come forward and support.
The second lockdown, which promulgated in major countries like Germany,France and the UK since last November, has led to a liquidity crisis in Tirupur’s exporting units, mainly MSMEs which urgently require the following financial measures from the Government to overcome the ongoing crisis and sustain in the business.
Apart from disruption in the major global markets, the continuous increase in yarn prices due to change in business dynamics has also impacted the garment sector largely – thereby eroding the competitiveness of the industry.
Raja M. Shanmugham, President, Tirupur Exporters Association (TEA) has requested the Union Finance Minister to announce the above measures expediently and protect the apparel sector and employment.He wrote a letter to the Minister in this regard.
Considering the higher interest rate, he urged to extend the Extension of Interest Equalisation Scheme for at least another two years, which would help to workout the costing effectively and also enhance the competitiveness in the global market.
The scheme was recently extended for a brief period of 3 months, from 1 April 2021 to 30 June 2021.
There’s also been request to announce the rates for the items of RODTEP scheme.
The industry is not receiving the reimbursement of the embedded taxes including electricity tax,Mandi tax, GST on petro products paid by the exporters. The non-disbursement of RODTEP is also causing liquidity crisis.
Similarly it was also requested to extend the ECLGS to apparel sector by providing additional 20 per cent credit outstanding, as given to other sectors, and help ease their liquidity crisis.
