Business Daily from THE HINDU group of publications
Monday, Nov 26, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Nov 26, 2007 ePaper | Mobile/PDA Version |
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Industry & Economy
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Knitwear & Hosiery States - Tamil Nadu Tirupur garment exporters seek credit at 6% Besides seeking exemption of service tax and fringe benefit tax, the TEA also sought compensation of about 4 per cent against various State levies/ transaction costs incurred by the exporters. G. Gurumurthy Coimbatore, Nov. 25 Knitwear exporters in Tirupur have petitioned the Union Finance Minister, Mr P. Chidambaram, to peg pre- and post-shipment credit to exporters at 6 per cent interest, as a follow-up to the latter’s recent relief package for the sector hit by the appreciating rupee. At a function held in Karaikudi, Tamil Nadu, the Tirupur Exporters Association (TEA) president, Mr A. Sakthivel, stated that garment exporters had initiated steps to familiarise themselves with currency hedging mechanism to shield against exchange fluctuations. But considering the enormity of the situation, the TEA president urged the Minister to rescue the exporters by compensating the hedging costs incurred by them. Besides seeking exemption of service tax and fringe benefit tax, the TEA also sought compensation of about 4 per cent against various State levies/ transaction costs incurred by the exporters. The association has also asked for a dual exchange rate and for pegging the rupee rate against dollar permanently at Rs 42 for exporters. Despite measures such as cost cutting and increasing productivity to remain competitive, the surge in rupee value was keeping away buyers who prefer sourcing products from India’s competitors. In Tirupur, the loss of business has already led to job losses for 7000 workers. Another 50,000 jobs would be lost by the yearend if timely remedial measures are not implemented. More Stories on : Knitwear & Hosiery | Exports & Imports | Tamil Nadu
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