TEA Appeals for Revision in Interest Subsidies

TEA Appeals for Revision in Interest Subsidies

The Tiruppur Exporters’ Association has appealed to the government to enhance the Interest Subsidy on Packing Credit to 5%.

Currently, a 3% per cent interest subsidy is given on Pre and Post Shipment Rupee Export Credit for Manufacturer MSMEs and a 2% interest subsidy for Non-MSMEs Manufacturers and Merchant Exporter up to 31st March 2024 with retrospective effect from 1st October 2021.

TEA in a letter to the Finance Minister Nirmala Sitharaman said that the Tirupur Knitwear Cluster exports 75% of Garments to the US, EU and UK Markets and is facing challenges like fewer booking orders, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.

The association pointed out that the impact due to global uncertainty is clearly reflected in the export performance of Ready-Made Garments in the past Three months.

This is prominently visible in terms of Dollars, the Ready Made Garments exports for the months of July, August and September 2022 compared to the corresponding months of last year has declined by 0.60 per cent, 0.34 per cent and 18.06 per cent respectively.

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