Following the appreciating rupee against dollar being adversely affecting textile industry, the government has been urged to find a positive solution to check the rising rupee and increasing input costs by the Apparels and Handloom Exporters Association (AHEA), the association’s President, Mr Ranjit P. Shah said.

The president while addressing a press conference in Chennai stated that textile exporters are increasingly finding it difficult to survive the competition from the neighbouring countries. He also pointed out that after the quota lift in 2008 from China, it will further stiff the competition.

The association warned that if the trend continues for a few more months the companies in the business may have to lay off workers and may even close down units or shift their production base to other countries.

On the other hand, the domestic products manufactured would be more expensive in the international markets as it is also likely that from January 2008, the US will permit duty-free import of textiles from Bangladesh, or at least reduce substantially the rates of import duty.

As per the remedies suggested by the association, the government needs to fix power tariff on a par with the industrial tariff (Rs 4.10 per unit) from the commercial tariff of Rs 6.10, give income-tax relief, increased duty drawback, and at least 2 percentage point cut in interest rate for pre and post-shipment credits.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

Free Member, Joined :06/09/2007
No of Topics Posted : 112
Reply/Comments : 9