TIRUPUR: Tirupur Industrial Federation, an umbrella organisation of job-working units, has criticised the Centre for neglecting the processing sector and job working units.
Its president Ahill M.S. Mani said that processing sector is a vital link in the textile value chain. It mostly has job-workers.
“We have been crying for help to overcome the crisis. But the Centre has not showed any sympathy to our problem and none of our demands have been met so far,” Mr. Mani said.
The rates for job works were coming down as exporters were passing on the burden because of appreciation in rupee to job workers. Besides, the interest rates too have gone up, he said. Mr. Mani said that when term loans were taken, the interest rates were 9 per cent. As 5 per cent interest subsidy was provided under the Technology Upgradation Fund Scheme, net interest rate worked out to be around 4 per cent.
But the banks have now raised the interest rate to 14 per cent, which had put tremendous pressure on the industry.
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