Industry & Economy
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Readymade Garments
Apparel exporters seek ‘positive solutions’
Our Bureau
Chennai, Nov. 16 The Apparels and Handloom Exporters Association has sought initiatives from the Government to find a positive solution to check the rising rupee and increasing input costs.
Addressing a press conference here, the association’s President, Mr Ranjit P. Shah, said textile exporters are increasingly finding it difficult to survive the competition from the neighbouring countries, and if the trend continues for a few more months the companies in the business may have to lay off workers and may even close down units or shift their production base to other countries.
He said that in 2008, quota restrictions will be lifted from China and it will result in a stiffer competition from that country.
It is also likely that from January next year, the US will permit duty-free import of textiles from Bangladesh, or at least reduce substantially the rates of import duty, “which will make our products look more expensive”, he pointed out.
The association sought income-tax relief, increased duty drawback, and at least 2 percentage point cut in interest rate for pre- and post-shipment credits, until such time the rupee stabilises.
It also wanted power tariff fixed on a par with the industrial tariff (Rs 4.10 per unit) from the commercial tariff of Rs 6.10.
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