The Hindu : Tamil Nadu News : TEA seeks Prime Minister’s intervention to save exporters

Online edition of India's National Newspaper
Monday, Sep 24, 2007
ePaper

Tamil Nadu

Tamil Nadu

TEA seeks Prime Minister’s intervention to save exporters

Staff Reporter

‘Nearly one lakh workers will be rendered jobless in Tirupur alone’

Strengthening of Indian rupee will be detrimental to the economy
Interest cut of 6 per cent for pre-shipment and post-shipment credits sought

TIRUPUR: Alarmed at the fall of US dollar against Indian rupee to a nine-year low, the Tirupur Exporters Association (TEA) has appealed to the Prime Minister to immediately intervene in the issue to save the exporting community from the ‘crisis’.

In a memorandum sent to the Prime Minister, the TEA president, A. Sakthivel, said the strengthening of Indian rupee would be detrimental to the economy. To sustain in the competitive global market, he asked the Centre to exempt exporters from paying Service Tax for all services incurred by the exporters and also from Fringe Benefit Tax.

The TEA sought interest cut of 6 per cent for pre-shipment and post-shipment credits. The compensation to the tune of 5 per cent should be given to the exporters against the State levies such as OCTROI, other State taxes and transaction cost. Besides these measures, the TEA appealed to the Prime Minister to advise the Reserve Bank of India to intervene in the market to resist the appreciation of rupee against dollar.

“Unless these measures are addressed immediately, we apprehend that not only the exports will go out of our country but also employees working in the garment units will lose their jobs,” he said.

Already employees had started losing their jobs in export firms and in Tirupur alone, 7,000 workers had been rendered jobless. “If this alarming situation continues, more than one lakh workers will lose their jobs in Tirupur,” he added.

Printer friendly page
Send this article to Friends by E-Mail