The industry has incurred huge losses and fund shortage due to the cancellation and deferred orders: Synthetic and Rayon Textile Export Promotion Council
The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) representing the man-made fibre textile segment has approached the government for a relief package to ensure business continuity post COVID-19 phase.
“Man-made fibre textile segment is one of the worst hit in this pandemic. The industry has incurred huge losses and fund shortage due to the cancellation and deferred orders, which has put the industry on ventilators,” said Ronak Rughani, chairman, SRTEPC.
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SRTEPC has submitted a memorandum to the government seeking aid and relief.
It has asked the government to announce a special corona relief package for the textile industry including entire value chain of the manmade fibre textile segment to tide over the prevailing coronavirus crisis.
These include special export incentive of 3% on fibre and yarn, 4% on fabric, 5% on made-ups for at least six months or till the impact of coronavirus subsides and global markets stabilise, a separate package for manmade fibre textiles industry as this segment has been reeling under the inverted duty structure under GST.
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Welcoming the various suggestions of SRTEPC, Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India Ltd said, “The immediate requirement is to allow the manufacturing facilities to function with at least 50% capacity and gradually lift the restrictions, create an environment to export the produce without any hassles from different departments involved in the system.”
“The government should facilitate good support from banking system by providing moratoriums and enhanced working capital facilities, and ensure duty refunds from the Government of India with immediate effect,” he said.
“Correcting the inverted duty structure under GST on man-made fibre would be another long pending step the government can announce now to support the sector, Mr. Bhageria said.
“These measures would put us on par with international players across the countries who have been competing with us. Providing extra export incentives is another major relief for the sector,” he added.
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