Industry leaders urge Minister of Textiles to come up with an ECLGS-like scheme for MSMEs in the hosiery sector


Industry leaders urge Minister of Textiles to come up with an ECLGS-like scheme for MSMEs in the hosiery sector

New Delhi, April 5 (KNN) Industry leaders in the textile sector have urged Union Textile Minister Piyush Goyal to launch an ECLGS-like program for MSMEs to help units in the knitwear sector weather the liquidity crunch .

A delegation comprised of heads of Tirupur Exporters Association, CITI, TEXPROCIL, AEPC and SIMA met with Textile Minister Goyal in a bid to draw government’s attention to the difficulties faced by the Indian textile industry and clothing due to rapidly rising commodity prices.

They also called on the government to remove the 11 percent import duty on cotton.

The Minister assured the leaders to address the issue as they presented their request in the form of a Memorandum of Understanding (MoU).

Immediate government intervention has been called for by industry leaders to protect the textile industry and also save the jobs of thousands of employees engaged in the industry.

The delegation is of the opinion that the fortunes of the textile industry are closely linked to the fortunes of the cotton producers and unfortunately the game played by the cotton traders disrupts the whole textile industry, the suppliers of accessories , dyes and chemicals, exports and employment, including banks. .

Apparel export units need to fulfill committed export orders for the same price of apparel, as buyers are not inclined to raise prices.

In addition, buyers have the opportunity to source garments from our competitor countries like Bangladesh, Vietnam, Cambodia and Turkey as they enjoy duty-free benefits in the EU market.

Due to the impact of the Russian-Ukrainian war, knitwear export units are now faced with buyers placing lower quantity orders compared to the corresponding period last year. (KNN Office)

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