With the lockdown in force for more than a month now, textile and garment exporters and manufacturers have sought support from the government so that the units are able to manage the fund crunch and the businesses are not hit severely.
The Apparel Export Promotion Council (AEPC) has sought waiver of demurrage charges extended till the end of the lockdown period. Several garment exporters were receiving imported goods by air. But they were not getting the documents in the bank or from the shipper, as the institutions concerned and courier services had stopped and the importers were unable to clear the goods. Hence, the demurrage waiver should be granted from March 1.
Indian Texpreneurs Federation said banks and financial institutions should expedite implementation of the measures announced by the Reserve Bank of India and the Government. Applications for additional working capital should be processed at the earliest. Availability of additional working capital limit will be critical for liquidity management of textile companies to restart operations.
South India Spinners’ Association has appealed to Tamil Nadu Generation and Distribution Corporation (Tangedco) to permit textile mills (LT, LTCT, and HT) to pay the electricity bill in six instalments. This will help the mills manage the funds available with them. Similarly, the MD charges should be reduced.