TN exporters hail budget for boosting cotton output, knitwear exports
TIRUPPUR: The Export Promotion Mission and a five-year plan to boost cotton production, announced in the union budget, would together drive up exports of knitwear firms and cut down manufacturing costs, said Tiruppur Exporters’ Association president K M Subramanian on Saturday.
Subramanian said the budget included positive announcements, for instance, the announcement of Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance. He said, “The government said it will streamline credit access for exporters, support for cross-border factoring and assistance for MSMEs to tackle non-tariff measures in overseas markets.”
On the mission for cotton productivity, Subramanian said the initiative would ensure a reduction in cotton prices and the availability of quality cotton. “Nearly 80% of the total production of the Tiruppur knitwear sector is cotton garments,” he said. The turnover limits of MSMEs have been raised, which is one of their long-pending demands, he said.
“MSMEs with investments up to Rs 125 crore will be recognised as medium enterprises, an increase from the previous limit of Rs 50 crore,” he said. Responding to TNIE on whether the announcements were adequate to address the challenges faced by the ready-made garment export sector, he said, “We will seek other requirements from the centre.”
Similarly, Tiruppur Exporters and Manufacturers Association (TEAMA) president M P Muthurathnam said the budget is “very favourable” for MSMEs.
Better access to capital
Apparel Made-ups and Home Textiles Sector Skill Council chairman A Sakthivel said the raising of investment and turnover limits of MSMEs will help enterprises achieve higher efficiencies of scale, technological upgradation and better access to capital.
The revision in classification criteria will bring in more firms under the MSMEs coverage. The provision to voluntarily declare material facts and pay duty with interest but without penalty will incentivise voluntary compliance. But, it will not apply in cases where the department has already initiated audit or investigation proceedings, he said.