Garment exporters in Tiruppur have urged the Union Finance Minister to announce steps to help the exporting units financially.
Raja M. Shanmugham, president of the Tiruppur Exporters’ Association (TEA), wrote to the Finance Minister, saying that major European countries have gone into lockdown. Last year’s two-month lockdown in India culminated in a rise in raw material prices. These factors have influenced the availability of funds for Micro, Small, and Medium-Sized Enterprises (MSMEs) in the garment industry.
As a result, the government could extend an additional 20% credit line to garment units under the Emergency Credit Line Guarantee Scheme, as it does to the hospitality and tourism industries. The labor-intensive garment industry is experiencing financial difficulties and requires additional credit support.
In addition, the WTO-compliant Remission of Duties and Taxes on Export Products scheme was declared with an effective date of January 1. However, the rates are yet to be declared, and levies such as electricity tax, Mandi tax, and GST on petroleum products have not been reimbursed to the units. He added, “The non-disbursement of RODTEP is also creating a liquidity crisis.”
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