: TEA urges govt to enhance interest subsidy on packing credit to 5% #finance #StockMarketNEWS TEA urges govt to enhance interest subsidy on packing credit to 5% Tiruppur, Oct 22 (KNN) The Tiruppur

TEA urges govt to enhance interest subsidy on packing credit to 5% #finance #StockMarketNEWS
TEA urges govt to enhance interest subsidy on packing credit to 5% Tiruppur, Oct 22 (KNN) The Tiruppur Exporters Association on Friday appealed to the government to enhance the Interest Subsidy on Packing Credit to 5 per cent to help the Knitwear Garment Extorting units sustain.

Currently, a 3 per cent interest subsidy is given on Pre and Post Shipment Rupee Export Credit for Manufacturer MSMEs and a 2 per cent interest subsidy for Non-MSMEs Manufacturers and Merchant Exporter up to 31st March 2024 with retrospective effect from 1st October 2021.

TEA in a letter to the Finance Minister Nirmala Sitharaman said that the Tirupur Knitwear Cluster exports 75 per cent of Garments to USA, EU and UK Markets and due to the current behaviour of these markets, the impact is quite visible in the export performance of Tirupur.

“The Knitwear Exporting Units in Tirupur Cluster are now facing a severe threat on their existence due to related financial issues like fewer booking orders, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment,” it said.

The association pointed out that the impact due to global uncertainty is clearly reflected in the export performance of Ready Made Garments in the past Three months.

This is prominently visible in terms of Dollars, “the Ready Made Garments exports for the months of July, August and September 2022 compared to the corresponding months of last year has declined by 0.60 per cent, 0.34 per cent and 18.06 per cent respectively,” it added.

There are still apprehensions that in the current month also, the negative export growth will be reflected more or less as recorded in September month.

TEA is hopeful that the government will consider the requisition and announce the positive measure expeditiously so as to help the Tirupur Knitwear Exporting Units. (KNN Bureau)