Knitwear exporters expressed their disappointment when the RBI, on Monday, left its key policy rates untouched.
‘After continuous increase in the policy rate, the RBI, had only in the last revision reduced the rate by half-a-per cent and we were expecting a cut by another 50 basis point in its mid-quarter review this morning. We were terribly disappointed to note that the RBI preferred to maintain the status quo rather than tweak the rates. Garment exporting units are struggling to survive. A rate cut at this juncture would have given the sector the necessary fillip to compete and sustain in the global market,’ the Tirupur Exporters’ Association President, Mr A. Sakthivel, said.
He said "though the RBI decided to enhance the Export Credit Refinance facility significantly from 15 per cent of the outstanding export credit (eligible for refinance) to 50 per cent, cost of funds is the crux of the issue".
The TEA President has reiterated the industry’s plea for a separate chapter for exports. "This has been our long time demand," he said.