Dr A Sakthivel, Chairman AEPC has written to Union Finance Minister, Shri P Chidambaram, on the demand of Garment Exports to give separate chapter for interest rates in export sector.
In his letter Chairman AEPC wrote, “Reserve Bank of India has announced the credit policy. However, the garment export industry was expecting lowering of the interest rate, which has not been announced.
“The pre and post shipment credit rates are hovering around 10% which is very high when compared to interest rates available to our competitors.”
It was your initiative through which you had given a separate chapter for interest rates in the export sector. The industry appeals to you for reintroduction of the separate rates of fixed 7.5 % for the labour intensive sectors of clothing and textiles, he added.
Dr Sakthivel further said, the industry is looking upon you for this help as a stable and long term solution to uncertain high lending interest rates.
On increasing the interest subvention from 2% to 3%, Chairman AEPC, Dr A Sakthivel, thanked Union Finance Minister.
He stated that, “The garment exporting community takes this opportunity to thank you for enhancing the interest subvention from 2% to 3 % in Readymade Garment sector. This initiative is a great help to our labour intensive sector employing over 11 million workers and industry earning over Rs.75000 Crores.”
