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Save Knitwear Garment Export Sector, Tirupur Exporters Association Appeals to Textile Mills

Chennai:

Port Wings News Network:

In a media statement on 30 June, Shri. Raja M Shanmugham, President, Tirupur Exporters Association (TEA), said the cotton yarn price increase by Rs.20 per kg in this month has literally pushed the knitwear garment export sector into a difficult situation and to sustain in the competitive global environment.

BELEAGUERED KNITWEAR EXPORT SECTOR

While taking stock of the situation, he said the beleaguered knitwear export sector has been passing through a challenging business environment further to implementation of GST and this could be apparently witnessed from the continuous declining of knitwear exports month on month basis since October 2017, after three months transition period is over and the declining of exports for the second half yearly period of  2017-18 was 21%.  The most worrying factor is that the negative trend in exports growth is continuing in the current financial year also and the average decline of knitwear exports in the month of April and May was 34%.

BRING BACK THE INDUSTRY FROM BRINK

Shri. Raja M Shanmugham stated that the knitwear sector is now only booking the orders, business have now started to look ahead and poised to bring back the industry from brink after prolonged one year period lull and at this point of time, the increase in yarn prices would derail the industry and the aftermath effect would be severe as not only the knitwear garment sector will get affected but also there will be a boomerang effect on the Textile mills. Considering this crucial concern and the overall benefit of textile industry, he appealed to the Textile Mills not to increase the cotton yarn prices and also not to stop cotton yarn supply.

MANDATE COTTON CORPORATION OF INDIA TO ENSURE AVAILABILITY

On the increasing of cotton yarn prices, Shri.Raja M Shanmugham said he has already met the Union Minister of Textiles Smt.Smriti Irani and requested to mandate the cotton corporation of India   to ensure the availability of sufficient quantity with desired quality cotton to protect the interest of farmers, textile industry and also employment. The point of contention is that the impact of increase in cotton prices has made the textile mills to increase the yarn prices which ultimately affect the downstream value added sectors like weaving, knitting, garmenting, made ups etc., particularly value added exporters as they could not revise the price upwards immediately as the prices were fixed more than three to five months ago.

He further mentioned that he also met Shri.K.Phanindra Reddy IAS., Principal Secretary to Government, Ministry of Handloom and Textiles, Government of Tamil Nadu, on 29 June, discussed cotton crisis arisen further to wrong policies of CCI and emphasized the need to cut down the escalating cotton prices. He added that the Principal Secretary has assured to take up the issue with Central Government through Hon’ble Chief Minister of Tamil Nadu.

Shri.Raja M Shanmugham once again appealed to the textile mills to protect knitwear garment sector and employment by not increasing the prices and also ensuring the continuous supply of yarn.

 CENTRAL GST COMMISSIONERATE, COIMBATORE PROVIDES TEMPORARY RELIEF TO FILE GST REFUND APPLICATION

Shri. Raja M Shanmugham, President said after revision of format of the form in the GST website on 15th April 2018, it has been difficult to upload the Statement 3 containing details of export invoices with EGM details and the concern is that the EGM field in the website accepts only 7 digit numeric values while in many cases EGMs are issued in four / six numeric digits and in the cases where, the EGMs raised by CFS contain alpha numeric figures which the system is not accepting till now.  He pointed out that due to non-availability of 7 digit EGM immediately, our members were not in a position to file refund application.

Shri. Raja M Shanmugham said further to representation and meeting with the Commissioner, Central GST Commissionerate, Coimbatore, as a temporary measure, Shri.Sreenivasa Rao, Commissioner, Central GST Commissionerate, Coimbatore has now given a permission to the exporting units for filing of refund application with available EGMs on hand along with an undertaking stating that they would get Gateway EGM and file before the final settlement of claim, within two months. Accordingly, after filing of refund application, 90% of amount will be released to the exporting units.

Shri.Raja M Shanmugham also said the exporting units have been taking efforts  to receive Gateway EGM from the liners.

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