Struggling to survive, apparel exporters have urged the Government to extend the interest equalisation scheme for a minimum of 2 years and at a rate of 5 per cent. The scheme expired on 31 March 2020.
In the extremely volatile and uncertain cash flow situation of the apparel exporters, it is must to extend the interest subvention scheme.
Exporters have also requested for an increase in working capital limits by a minimum 25 per cent without any additional collateral.
Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) approached the Ministry of Commerce and said, “This enhanced 5 per cent interest equalisation scheme, which is so far available to MSMEs, may also kindly be extended to all the apparel exporters for at least 2 years up to 31 March 2022 to enable the industry to have affordable access to credit. In the absence of any announcement on this scheme, the banks are debiting the accounts of the exporters.”
He also urged the ministry to impress upon the Ministry of Finance and the RBI Governor on certain other issues that are affecting the apparel exporters.
The requests include the extension of packing credit and forward contract by 6 months without penal interest and waiver of the penalty imposed on forward covers by some banks.
