Business

Man-made fibre textile players want COVID-19 relief package

Industry moots special export incentives, support from banks

The Synthetic and Rayon Textiles 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 pandemic.

“Man-made fibre textile segment is one of the worst-hit in this epidemic. There have been huge losses incurred and shortage of funds due to cancellation and deferred orders and that has put the industry under a ventilator,” said Ronak Rughani, chairman, SRTEPC

The SRTEPC has submitted a memorandum to the government seeking aid and relief.

It has asked the government to announce a special COVID-19 relief package for the textile industry, including for the entire value chain of the man-made fibre textile segment to tide over the prevailing crisis.

The demands include a special export incentive of 3% on fibre and yarn, 4% on fabric and 5% on made-ups for at least six months or till the impact of COVID-19 subsides and global markets stabilise and a separate package for man-made fibre textiles segment as this segment has been reeling under a inverted duty structure under GST.

Welcoming the various suggestions of The SRTEPC, Madhu Sudhan Bhageria, CMD, Filatex India Ltd., said, “The Immediate requirement is to allow the manufacturing facilities to function at least 50% capacity and gradually lift the restrictions and create an environment to export the produce without any hassles from different departments involved in the system.”

“The government should ensue good support from the banking system by providing moratoriums and enhanced working capital facilities and ensure all duty refunds from Government of India with immediate effect,” he said.

He said this would go a long way in the life of the man-made fibre players in the country.

“Correcting inverted duty structure under GST on man-made fibres would be an 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,he added.

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Printable version | Jul 5, 2020 6:48:09 AM | https://www.thehindu.com/business/man-made-fibre-textile-players-want-covid-19-relief-package/article31359538.ece

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