Finance Minister Meets Textile Exporters To Evaluate Losses

p_chidambaramNew Delhi: Over the last several months, textile exporters have been hit hard by escalating Indian currency and rising interest rates. Now the exporters could look ahead to some more assistance from the administration to alleviate their losses.

Mr. P. Chidambaram, Indian finance minister contacted textile exporters on Thursday today to evaluate the harm done by the rising rupee.

Functionaries from public sector banks and institutions also attended the meeting.

Exporters have demanded a minimum 2% subvention in rate of interest on export credit.

M S Mathivanan, chairman, Powerloom Development and Export Promotion Council told, “We want an interest rate subvention for export credit. We have demanded that export credit should be provided at 6%, which is equivalent to the Bank Rate.”

Trade analysts said that presently, the average export credit interest rate is 8.5 percent.

After the meeting, M B N Rao, chairman, Canara Bank, said, “... Finance Minister will examine all suggestions and definitely take some measures.”

On possible actions that could be viewed, Mr. Rao said. “Financial measures is one aspect but a more comprehensive approach is needed. I am sure the finance ministry is aware of the situation in the sector, and the government will take all possible measures for the textile sector.”

According to the submission made by powerloom exporters, every 1% admiration in Indian currency brings about 1.2% attrition in profitableness.

The finance ministry has tailored an export package of Rs 5000 crore for the sector, but exporters say it is simply not enough. The rebates on duty will give exporters a saving of around 3% of their revenues.

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