TEA seeks govt to hike Duty Drawback Declining exports worries garment sector

TEA seeks govt to hike Duty Drawback  Declining exports worries garment sector

TEA seeks govt to hike Duty Drawback Declining exports worries garment sector

Tirupur, Aug 26:
Hike in Duty Drawback and competitive Rebate of State Levy (ROSL) alone will help garment sector to see growth in knitwear exports, observed Tirupur Exporters Association (TEA) outgoing president Raja M Shanmugham.
Addressing at the Annual General Meeting of the association, he said that garment sector is still facing plethora problems thereby putting them in tight spot and added that the first four month of current fiscal 2018 – 19 presented a grim picture with total knitwear exports coming down to Rs.16,732 crore as against Rs.19,182 crore clocked for the corresponding months in 2017-18, showing a negative growth of 13%.
He went to say that implementation of GST and consequent reduction in Duty Drawback, ROSL was quite visible from the continuous declining of exports. The downfall of exports could be brought back to the growth trajectory only by enhancing the competitiveness. Hence, the government must come out with early solutions like increase in Duty Drawback, ROSL to be competitive and continuance of the same till the level playing field is attain after having FTA / CECA/ CEPA with respective union / countries.
Expressing concern over declining knitwear exports, he said that garment exporters have been put to lots of hardship in running the units due to various factors and added that exports is the lifeline for knitwear units. Unless, warfooting steps aren’t taken, the garment sector will go from bad to worse. TEA, he said, has been pulling strings from several sides right from State government to Central government besides the Union Textile Ministry seeking early solutions to the problems faced by garment sector.
Citing the request made by Tamil Nadu chief minister to host International Textile Fair in Coimbatore, TEA president said that a meeting with State Handlooms Minister O S Manian, it has been decided to hold the global expo for three days from January 27 at CODISSIA trade fair complex. In this connection, the Tamil Nadu government has assured to support with Rs 2 crore for this mega global event.
Regarding the Tamil Nadu government’s proposed Integrated Textile Policy, he said that the long awaited new Integrated Textile policy is to be announced soon and added that early release of the policy with incentives at par with other states will boost investment in Tamil Nadu at a time when other states are inviting Tirupur entrepreneurs to invest in their respective states.
On skill development, Raja M Shanmugham said that following TEA’s representation regarding skill development, the Department of Handloom and Textiles, Government of Tamil Nadu has taken up initiatives to formulate right kind of procedures for upskilling of the existing garment workers, about two lakh in Tirupur cluster, and is ready to extend the necessary support to make the programme more meaningful.

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