Tirupur’s exporters urge banks to help tide over the crisis

With Tirupur knitwear sector passing through a difficult situation due to unprecedented surge in cotton prices, it is seeking support from the Government as well as the banks to pull them out of the crisis.

Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA) has written a letter to Dinesh Kumar Khara, Chairman, State Bank of India and urged to help MSMES to tide over the liquidity crisis.

Tirupur knitwear sector comprises 95 per cent of MSMEs and, notably, its because of support from banks that its apparel exports could clock Rs.33,525 crore in last fiscal year 2021-2022.

“Liquidity has been drained off from its sanctioned limits and despite this, it is possible for MSMEs to execute only 40 per cent of its own capacity. As an impact of liquidity crisis, rest of orders have also got stuck up in the pipeline itself. The increased price of cotton yarn cannot be recovered easily and timely from buyers, and so MSMEs are under pressure,” he said.

Just a few days back, this issue was also raised to the Union Finance Minister.

Raja further added that the banks should review the issue empathetically, hand-hold like a team member and act accordingly with the customers to tide over the current situation, and also help for sustenance of the units and protect the employees attached with these units.