Global markets down, bail us out, TEA urges govt

“The second lockdown promulgated in foreign countries has hit exporting units and mainly MSME’s in the district. Apart from disruption in major global markets, the steady increase in yarn prices due to closure and partial utilisation of textile mills has also impacted the knitwear sector while also eroding its competitiveness,” said Raja M Shanmugham, president, Tirupur Exporters Association (TEA) in a petition to Union Finance Minister Nirmala Sitharaman on Friday. 

The exporter’s body has sought extension of the Interest Equalisation Scheme, which was already extended for three months till June 31, 2021, for another two years to enhance competitiveness. 

Referring to the extension of Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 to the hospitality and tourism sectors by providing 40 per cent credit outstanding, Shanmugham said, “being a labour intensive sector and considering the financial stress, it has been our request to extend the ECLGS to apparel sector also by providing additional 20 per cent credit outstanding like others to ease our crisis.” 

Also, RoDTEP (Remission of Duties and Taxes on Export Products) and WTO compliant scheme was announced by replacing the erstwhile Rebate of State and Central Levies and Taxes (RoSCTL) Scheme from January 1, this year. 

“Unfortunately the non-reimbursement of taxes, including electricity, GST on petro products under the new schemes is also causing a liquidity crisis. Hence, we appeal to the Minister to announce the financial measures expediently to protect the apparel sector,” he said.