The Hindu : National : Relief soon for garment exporters: Vaghela

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Friday, Jun 08, 2007
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Relief soon for garment exporters: Vaghela

Staff Reporter

TIRUPUR: Garment exporters, who have been greatly affected in the wake of the rise of the rupee against the dollar, will shortly get some relief such as enhanced duty drawback and lowering of interest rate for pre- and post-shipment credits, Union Minister for Textiles Shankarsinh Vaghela said here on Thursday.

Talking to reporters on the sidelines of a function marking the commissioning of a trouser plant, he said the textile industry, especially the readymade garment segment, was the most affected following the strengthening of the rupee.

"Garment exporters are suffering now. I have received complaints from the industry and I have taken up the issue with the Prime Minister and Finance Ministry. Ours is not a controlled economy," he said.

Garment imports by the U.S. and Europe had declined by 4 to 6 per cent in the first quarter of the fiscal. Consultations were on to modify the extended Technology Upgradation Fund Scheme (TUFS) and the changes in the scheme would be announced before June end, he added.

Pointing out that more than 80 per cent of the benefits under the TUFS had gone to the spinning sector, especially to huge spinning mills, Mr. Vaghela said thrust would be given to other weaker areas.

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