The Hindu : Tamil Nadu News : Relief for textile exporters

Online edition of India's National Newspaper
Monday, Dec 01, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

Relief for textile exporters

R. Vimal Kumar

Tirupur: Textile exporters here who have been reeling under severe economic strain owing to recession in the US and Europe, two of their prime markets, can now feel a bit relieved.

The Reserve Bank of India has decided to extend the period of entitlement of the first slab of post-shipment rupee export credit, now available at a reduced interest rate ceiling of the benchmark prime lending rate (BPLR) minus 2.5 percentage points, from 90 days to 180 days with effect from December 1.

The announcement has come after various exporters’ associations across the country like Tirupur Exporters Association made an appeal for an extension of entitlement period for post-shipment credit on a par with the sop recently given for pre-shipment credit.

A Sakthivel, president, Tirupur Exporters Association, told ‘The Hindu’ that the decision to broaden the period of entitlement for post-shipment credit was ‘welcome’ even if it was for 180 days, considering the enormous difficulties faced by the knitwear exporters to sustain growth after being gripped by uncertainty in the wake of economic slowdown.

In fact, TEA has sought an extension up to 270 days identical to the provisions made for pre-shipment credit.

The apex bank has also assured that the interest rates effective from November 28, 2008, to April 30, 2009, will not be exceeding BPLR minus 2.5 percentage points per annum for post-shipment credit up to 365 days for exporters covered under the Gold Card scheme.

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

Tamil Nadu