Port Wings News Network:
Tirupur Exporters Association (TEA) has urged the Finance Ministry to announce the revised “All Industry Rate of Duty Drawback” for garment sector from 2% To 4.5% immediately as proposed in September this year.
In a media statement issued on 1 December 2018, Shri. Raja M Shanmugham, President, TEA, said the All Industry Rate of Duty Drawback usually announced in the month of September / October has not been still announced this year and mentioned about the news items appeared in the press which had stated that the Government has been delaying the announcement since the Rupee has depreciated against Dollar.
Shri Shanmugham said after softening of crude oil prices, the Rupee has been now in the declining trend against Dollar, from peak value of Rs.74.35 per Dollar on 10 October 2018 to Rs. 69.60 per Dollar on 30 November 2018.
“We feel that the trend will continue in the coming days also,” he added. He pointed out that the benefit of Rupee depreciation has been short lived and already the knitwear exporters are feeling the pinch of it.
Shri Shanmugham said in the half yearly period of current Financial Year, the total knitwear exports from our Country has recorded Rs.26,056 Crore against Rs. 29,210 for the corresponding period in the previous year 2017-18, a decline of 10.8%. While calculating knitwear exports from Tirupur for the same six months period reveals that the exports has declined from Rs.13,600 Crore to Rs.12,100 crore , a negative growth of 11%. He pointed out that after implementation of GST to the garment sector from October 2017 onwards, only after one year, i.e in the month of October 2018, the exports have clocked positive figure compared to the previous year.
After thanking Shri, Arun Jaitley, Union Minister of Finance for the RBI announcement of increasing the Interest Equalisation rate from 3% to 5% on Pre and Post Shipment Export Rupee Credit from 2nd November 2018 onwards, Shri Shanmugham said he has made an appeal to the Finance Minister to immediately announce the revised All Industry Rate of Duty Drawback for garment sector by increasing from 2% to 4.5% and help the garment sector to overcome the crisis and enhance exports including employment.
Shri Shanmugham said he has also sent a requisition letters to Smt.Smriti Irani, Union Minster of Textiles, Shri. Rajiv Kumar, Secretary, Department of Financial Services, Ministry of Finance and Shri. Raghvendra Singh IAS., Secretary, Ministry of Textiles, to help for revision of All Industry Rates of Duty Drawback.