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Knitwear exporting units, which have been voicing concern over high interest rates, were rather disappointed to note that the key rates remained unchanged excepting the 50 bps reduction in SLR (Statutory Liquidity Ratio).
Reacting to the second bi-monthly monetary policy statement, President of Tirupur Exporters' Association A Sakthivel said: "the 50 bps in SLR is a welcome move, as it would help banks extend more credit to units that require funds.''
"But to make the garment exporting sector competitive, the RBI will have to come up with a separate chapter for exports and fix the pre and post shipment export credit at 7 per cent.This has been a long pending demand,'' he added
Reverting to packing credit, he said: "Extension of interest subvention on packing credit to the garment sector would be known only in the ensuing union budget. In the meanwhile, we are paying higher interest on packing credit as the three per cent interest subvention given to garment sector expired on March 31, 2014.''
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